Workers in industries that began the year with layoffs have faced a challenging start to 2024.
As Google reduced jobs in its central engineering, hardware, and assistant teams, job cuts are making headlines in the tech sector. Meanwhile, Amazon is cutting positions in various divisions, including Prime Video, MGM Studios, Twitch livestreaming, and Audible. Citigroup has also reduced its workforce by 10% outside the tech sector as part of a corporate overhaul.
Recent data from the U.S. Department of Labor indicates that layoffs have been close to historic lows, and according to Scott Dobroski, a career trends expert at Indeed, "Being let go from a job is not as taboo as it once was years ago as there's a variety of changes going on in the world of work across the nation."
These steps can assist you in strengthening your finances and initiating your job search:
1. Calculate Benefits Like Severance Pay and Unused Time-Off
According to Ted Jenkin, a certified financial planner and CEO of oXYGen Financial, a financial advisory and wealth management firm based in Atlanta, you may receive a severance package or payment for unused time off when leaving your job. Hence, it is essential to find out when you might get your last paycheck and how the pay schedule works to gauge the size of that deposit better and save if you find a new job quickly. Remember that the payment may be prorated based on the time of year, not your full annual allotment. Jenkin also recommends filing unemployment benefits promptly, as approval can take weeks.
2. Consult with Experts on your Exit
If your employer asks you to sign a noncompete clause, consider negotiating to remove it from your severance agreement, advised Vicki Salemi, a career expert at Monster, as removing this clause may give you more flexibility in considering other job opportunities. Consulting with an employment lawyer can help you negotiate these terms, and if you want to handle the tax implications of your severance pay more effectively, consider talking to an accountant, as suggested by Salemi.
3. Book Important Medical Appointments
Schedule any necessary doctor's appointments, including dental and vision care, if you still have your employer-provided healthcare plan and flexible spending account before COBRA coverage begins, according to advice from Jenkin.
4. Manage Your 401(k) Loans
If you've borrowed from your 401(k), consult your retirement plan provider to understand the implications of a job loss. Some plans may necessitate repaying the loan within 90 days, while others might permit rolling the loan into a new 401(k). Failure to repay the loan can result in it being treated as taxable income, according to Jenkin.
5. Use Tools to Boost Your Job Search
Using technology can significantly reduce the effort needed to find a new job, according to Dobroski. Inform your social media connections about your job search, and update your profiles on job search sites with your skills, experience, and preferences for a new role to help you discover job opportunities you might not have considered otherwise. Dobroski has observed instances where individuals transitioned from roles like bank tellers to sales executives by finding positions aligned with their skill sets, enabling them to have secure salaries ranging from $30,000 to $35,000 or more using this method, Dobroski added.
6. Commit to at least one Job-Hunting Task Daily
Job searching can be tiring and frustrating. To stay on course, Dobroski suggests doing one thing every day: updating your resume, applying for a job, setting up a new profile on a job search site, or conversing with a mentor.
7. Perfect Your Resume and Other Materials
While updating your resume, ensure it reflects any recent achievements or skills that make you stand out to potential employers. Highlight transferable skills, like leading with empathy, meeting deadlines, and managing a budget, suggested Salemi. Despite layoff news making headlines, remember that numerous job opportunities still exist. With the unemployment rate at 3.7%, there are still plenty of available jobs, mentioned Jenkin.
