Whether you ended the cooperation yourself or were laid off, sacked, or made redundant, losing a job can be a complex and unexpected experience that can impact your well-being and financial stability.
A job loss may feel like a personal failure. However, it is a common experience for many professionals today.
So, instead of losing courage and motivation for future endeavors, you should check out our detailed guide that helps you learn how to handle a job loss with grace. We discuss immediate steps you should take, the coping strategies you need to implement, and tips on moving forward after losing a job.
Key Takeaways
- A job loss can lead to financial instability, cause traumatic experiences, and deteriorate mental and physical health.
- Handling a job loss requires acknowledging one’s emotions, grieving, and setting up a new budget based on potential severance or unemployment benefits.
- Reaching out to your network and asking for emotional, financial, and professional help are also good ways of handling a job loss.
- Updating your resume and LinkedIn profile, learning new skills, finding a good job search strategy, and seeking temporary employment can help you find a new job faster.
- Building resilience is the key to new employment; do not give up quickly, and consider your situation a new opportunity.
4 Immediate Steps to Take After Losing a Job
The job loss anxiety can be very high the first few days after having this experience. Therefore, the psychological effects of losing a job can be many—you may feel disturbed, hurt, unfairly treated, and scared for your future.
However, knowing how to manage job loss right after this experience can help you protect your mental health and stay resilient during difficult times.
Let’s find out the four steps you need to take as soon as you lose a job:
#1. Allow Yourself to Process the Loss
Handling an unexpected job loss can cause deep grief. It can be like losing someone you love and care about or something of great sentimental value.
A job can bring many memories, and it can be difficult to drop the habit of going to work. Similarly, saying goodbye to colleagues and giving up your routine (e.g., using specific desks or commuting to the place of work) can be hard to cope with.
Our advice is to take time to acknowledge and process your emotions. Not fighting these feelings will allow you to process them faster. Another important advice is to avoid rushing into panic mode or self-blame, as people often do this when experiencing a job loss.
#2. Assess Your Financial Situation
People who work only for one employer can face serious financial issues after a job loss. On such occasions, evaluate your financial situation by checking your savings and other valuable possessions. Then, create a plan based on your financial situation.
This includes calculating your average spending and trying to fit your budget. If your budget is too low, you will need to cut your expenses. For instance, you can cancel all your subscriptions or use cheaper ones.
If you pay rent, consider renting a less expensive apartment. Similarly, try to replace everyday products (e.g., food and hygiene products) with cheaper ones for the same purpose. Also, forget about expensive hobbies for a certain period.
#3. Review Your Employment Rights
Another immediate step for handling a job loss is to see if you are eligible for another source of income. Depending on how you lost your job, you may have the right to severance packages or unemployment benefits.
Severance packages are a form of compensation you can get from a company if you are laid off. Similarly, if you did not gain your current unemployment status through your fault, you may be eligible for unemployment benefits.
If our work agreement is unfairly terminated, you can take the following action:
- Examine all the termination, dispute resolution, severance, and notice period clauses.
- Contact HR or your employer and ask for an explanation.
- Collect all the evidence.
- Consult the labor law or a lawyer.
- Try to negotiate severance.
- File a complaint with a labor board or court.
#4. Inform Your Network (When Ready)
Spreading the word about your job loss can be difficult, given your guilt and defeatism. Yet, doing so will enable people in your network to help you cope with your loss in various ways.
First, inform immediate family members and closest friends. Next, proceed with mentors and others from your professional network (e.g., ex-colleagues). If you do not feel comfortable sharing the news on social media, contact people individually.
Nevertheless, job loss and job hunting posts on social media may not be a bad idea because many people on such platforms are supportive and offer help. Additionally, notifying your network about a job loss often means that you can get financial aid, consolation, and compassion.
The Psychological Effects of Losing a Job & How to Cope
Jobs shape us as people, as we spend an average of one-third of our lives at our jobs. Even if we do not like our jobs, they structure our lives and give them purpose and meaning.
This is why job loss is not just a financial issue—it can also significantly impact mental health. The psychological effects of job loss may be felt immediately or after a short period.
Let’s examine this issue in more detail and see the coping strategies for it:
#1. Job Loss and Mental Health
Being jobless can cause various effects on mental health, such as anxiety, depression, shock, and anger. As mentioned before, having no job can strain you financially because you may not have enough funds to meet basic needs. Also, an unstable financial situation can cause insecurity, which can be hard to deal with.
Some people may regard their jobs as a vocation, especially if they work in the education or medical sectors. Handling a job loss in such cases is even more challenging, as the person may feel that part of them is gone.
Specific individuals may also put much effort and time into building their careers and identify with their jobs to the point that losing them feels like an identity crisis. On such occasions, it is important to realize that these feelings are normal and that you should acknowledge them, knowing they won’t last forever.
#2. Can Losing a Job Cause Trauma?
Losing a job can cause trauma, as this experience affects several major parts of a person’s life. Firstly, job loss leads to low self-esteem, self-blame, and even self-resentment. Such agitated states can further cause relationship problems due to high stress levels and low tolerance to it.
Low self-actualization can also make you feel bad, as you may think you haven’t met your expectations or those of your family or friends. Moreover, a job loss trauma disrupts your sleep cycle and daily routine. It impacts your energy and motivation levels, all leading to mental health problems such as depression and anxiety.
As trauma can leave deep scars on a person, job-hunting on its own may not be fully effective for handling a sudden job loss. This is because these activities do not involve emotional and cognitive processing elements. On the other hand, pairing job hunting activities with other supportive actions (e.g., hobbies, going out, etc) can help you rise.
#3. Coping Strategies for Handling Job Loss Emotionally
To cope with the loss of a job emotionally, engage in self-care activities, set a daily routine, and seek support. For instance, take up a new hobby and meet new people. You can also spend some time focusing on the positive aspects of your life from the past and present.
For example, list your greatest achievements or recall your happiest memories. Self-care also implies taking care of your physical and mental health. You can run or exercise and ensure a balanced and healthy diet.
Making a daily routine and sticking to it is also a nice way to manage a job loss emotionally. Before you go to bed, create a plan for the following day. Your plan does not need to include many activities—it only needs to fit your pace.
If you feel you need more help, you can contact professionals such as therapists and coaches. You can also accept counselling services if offered by your previous employer or seek recommendations from people close to you to find a professional who suits you.
How to Move Forward After a Job Loss
To move forward after a job loss, you should take proactive steps to regain career momentum, such as developing new skills, finding a temporary job, trying new job-hunting methods, etc.
Let’s learn more about the main steps to take after losing a job:
#1. Update Your Resume and LinkedIn Profile
Handling a job loss is easier if you find a new one shortly after, even with all the novelties you may need to adapt to. To begin with, you can update your resume. Adding your latest experiences, professional references, education, and skills can speed up your job hunting process and shorten unemployment.
You can also create a portfolio for a job interview, which is a good way of showcasing your experience to an interviewer or hiring manager. It goes beyond the list of your skills or other abilities in your resume. A portfolio also provides a more transparent and engaging way to present your faculties.
Lastly, you should update your LinkedIn profile and expand your network. Doing so will allow you to meet new people (both job seekers and providers) and increase your chances of finding new employment. There are many tips for perfecting your LinkedIn profile—sharing relevant content, creating a strong headline, etc.
#2. Upskill or Learn Something New
If you want to keep working in the same sector as before but stand out in the job market, you can add new skills to your set. For instance, if you work as an HR, your communication skills may be great, but you may lack technical skills.
In contrast, you may want to take one step forward. For example, web administrators may want to level up and become programmers. If so, search for courses, webinars, workshops, and get new certifications and diplomas.
Similarly, if you wish to change your career, learn the basics of the new job, gain volunteering experience, or enroll in an internship. You can also join a book club or similar community to meet new people with whom you can discuss your new profession.
#3. Set a Job Search Strategy
Setting a job search strategy to handle job loss is a nice way to focus on your future. First, you need to decide whether to pursue the same career or a new one. If you want a new career but are unsure which one to choose, you can base your decision on your personality, lifestyle, or similar factors.
After choosing your career path, take steps to expand your networking opportunities. Attend non-profit events, alumni events, and job fairs, engage in cold contacting, speed networking, etc.
Moreover, organize job applications and ensure they meet the application criteria and are relevant to a certain position. Avoid mistakes such as having unrealistic salary expectations or applying to every job you find.
Finally, prepare for an interview by examining common interview questions as well as specific ones related to your profession. Pay attention to your body language, what you wear, how you converse, what questions you ask, and how you end the interview.
#4. Consider Freelancing or Temporary Work
You do not need to go full steam ahead to handle a job loss with success. Instead, you can take smaller steps such as finding a temporary and freelance job or a side hustle. In general, many individuals find it hard to regain motivation and confidence in job search, especially in a highly competitive job market.
As giving up is not an option, finding an alternative to a full-time job is the best way to counter unemployment in such situations. For example, you can find a freelance job in various niches (SEO, accounting, data science, translation, etc) and list it on your resume when searching for a different job later.
You can also become an independent contractor and work as a social media manager, virtual assistant, ride-share driver, or other positions. Starting part-time is also an option, as you can transition to full-time after some time.
Staying Resilient After a Job Loss
Handling a job loss may be hard enough, but finding employment may make the process even more tedious and intense. Still, resilience can help you get through it more quickly and easily.
Here are the main tips for building the resilience for finding a new job:
#1. Reframe Job Loss as an Opportunity
Reframing unemployment as an opportunity helps you focus on the bright side when handling a job loss or even dealing with losing a job you love. Start by shifting your perspective, which allows you to see your job loss as a path to new experiences.
You can find a job with a higher salary, fewer working hours, a better work environment, and better employment benefits. Plus, you have more promotions and build your career faster at a new job than at your previous one.
#2. Build a Support System
Unsurprisingly, you may feel hopeless or stuck after losing a job. However, you can build a support system and reach out to people who can provide emotional and professional support.
Get in touch with family, friends, and members of your religious community, spend quality time with them, and have fun; this can help you think positively and motivate you to endure the job-hunting process. You can also connect with your mentors and ex-colleagues and ask for professional advice on job searching.
#3. Maintain a Healthy Routine
In addition to focusing on handling a job loss by looking for new employment, you need to take breaks and rest. Constant job-hunting can lead to emotional and physical exhaustion and burnout. Therefore, your health should always be your top priority.
Maintaining a healthy routine implies having an organized sleeping schedule and eating habits. Regular exercise, travel, and engaging in social activities (e.g., partying) can also help keep good physical and mental health.
#4. Stay Persistent and Patient
Finding a new job is a matter of good timing, luck, effort, job market status, and many other factors. This may be why some people struggle to find employment even after investing a lot of time in job hunting.
Although this may seem discouraging, it is important not to lose hope and to stay persistent. Do not give up looking for job vacancies or sending applications; your new job may be around the corner. Try developing your skills further and seeking new ways to conduct job research.
Final Thoughts
A job loss is a difficult experience, but it is not the end of a career. Handling a job loss requires proactive steps, such as taking time to process emotions, budgeting, revising employment rights, etc.
Seeking support from your network (friends, family, mentors, and therapists) is vital for overcoming struggles (trauma, anxiety, depression) that a job loss may cause. Staying resilient by taking care of your health and being persistent is the key to finding new employment.
Remember, there is a silver lining to everything—with the right mindset and strategy, better days will come.
