Lost Your Job? Here’s What You Need to Do

Posted on Nov 16th 2009, 02:39 pm, under Career Advice

The on-going economic recession has left millions of people across America without jobs. If you were unfortunate enough to be laid off from work, take a deep breath and don't panic. While it certainly isn't the best situation to be in, it's also not the end of the world. Here are several things you should do while you're in-between jobs:

1. Get unemployment benefits. If you don't already have another job waiting, then you might want to consider filing for unemployment. Look for your state's website for unemployment benefits. In addition, familiarize yourself with important, relevant details of the government's stimulus package (formally known as the American Recovery and Reinvestment Act of 2009). It provides several additional benefits, including an additional $25 a week and possible extension of unemployment support.

2. Avoid touching your 401K. As much as possible, don't withdraw any money from your 401k plan; chances are, taxes and other penalties will take away a significant proportion of what you take out. On top of this, the amount you withdraw will be added to your income, and you might get pushed into a higher tax bracket. 

3. Protect your credit. If you have a mortgage or any outstanding debts, let your creditors know about your current status. If possible, ask for a temporary reduction in your regular payments. Check the new Homeowner Affordability and Stability Act to see if you're eligible for mortgage refinancing.

4. Stick to a budget. Agencies certified by the Association of Independent Consumer Credit Counseling Agencies <> or by the National Foundation for Credit Counseling <> can help you create a budget for your household. In addition, many states offer their citizens assistance with food expenses, insurance premiums, and utilities, so check with your local government for these services.

5. Consider professional retraining. Several colleges around the country offer tuition to people without work for free or at greatly discounted rates. Ask your local educational institutions about college funding for the unemployed. If you were let go because your job was outsourced to another country, you may be eligible for retraining through the Trade Adjustment Assistance program, offered by the Department of Labor.

6. Keep looking for work. This is obvious, but there are diverse alternative means of employment that you may not have considered yet. You might try your hand at home-based work, or you could land a contract position. Whatever your decision, you'll pull through as long as you remain prudent and persistent.