How to prepare for a layoff: take these 10 steps before you lose your job

As businesses pull back their investment and trim budgets, workers face a challenging economy and a tough job market. Almost half of US employees (46%) In fact, research shows that there are concerns about layoffs next year.

The Trump administration’s cuts beyond federal government agencies, health agencies and nonprofits have resulted in hundreds of thousands of layoffs. Major mass reductions are also happening across the tech industry, the media and education. The number of people applying for unemployment benefits is rising, and tariffs are expected to spike costs and increase unemployment.

“We live in a period of rather radical uncertainty,” said Lisa Countryman Killos. JVS Bay Area CEOa nonprofit organization for career training in California.

Job seekers have spent months, and even years, as businesses freeze plans to hire new workers. Looking for new employment. Ziprecruiter career experts Sam Demes He said preparations for unemployment while actively employed help to avoid having to scramble during the crisis. “Being proactive really helps to provide mental security in the event of a layoff,” Demase said.

read more: Why can’t you get a job now? 9 Expert Tips to Stand Out For Recruiters

Do you think you’ll be fired? Here are some red flags

Demase says clear indicators of pending layoffs are not always clear indicators, but there are some clues to keep in mind.

coseDoes your position generate revenue? The role that creates non-repetition within an organization may be important for overall functioning, but these positions (HR, IT, law, and management) tend to be more vulnerable as they do not directly produce business revenue.

Have you ever had a restructuring of the anumention organization? Changes and reorganizations of leadership often indicate efforts to improve performance or address economic difficulties. Merge, streamlining, or employee acquisitions could indicate that a company is reducing or reducing costs.

Does the manager communicate regularly? If your boss suddenly becomes quiet or cancels a meeting, it may not be a scheduling conflict. They may be trying to minimize contact or steal communication before a company-wide announcement.

Has the projects been scrapped or has the budget been frozen? If future costs or travel are not approved, or if employment and promotions suddenly freeze, it could be a warning sign that the company is focusing on financial cuts.

Demase says it could show economic pressure to zoom out into the broader job market and reduce the list of competitors layoffs or jobs in the line of work within the industry. If you notice a decline in entry-level jobs, that could mean that these roles have been replaced by elimination or automation.

10 Ways to Prepare for a Layoff

Although layoffs are financially motivated, they can hit your confidence hard and make you emotionally vulnerable. “I feel it’s scary, like you’re no longer worth it, but it’s not,” Demase said. “It’s really important to remember that layoffs are business decisions.”

Here’s how to avoid being caught off guard:

1. Collect documents in advance

Some employers still provide high-level notices when power is reduced, but workers are being rejected with little or no notice. You may be locked out of your company’s devices and communications, such as email or payroll software.

Demase said he will collect your personal information on a computer at work to ensure that you have proof of employment and tax documentation. Salary and verification are required to apply for financial assistance or state unemployment benefits. You should not obtain confidential company information, but you can save a copy of your performance review and manipulate the sample for future reference.

2. Update your network and resume

Please update your resume and LinkedIn profile while you are still employed. DeMase recommends compiling a list of achievements, notable projects and positive feedback from colleagues and clients.

“Warming the network” is also a good idea, Demase said. If you’ve been employed in the company for a long time, check in with your former colleagues or clients now. “If you do that, when you reach out after you’re fired, it’s not 911,” she said.

3. Check your retirement agreement

Once their position is removed, a retirement package could be provided as compensation to laid-off workers. Companies do not need to provide these payments, but are often secured through union contracts. The amount varies depending on the employer, but the general formula is to pay 1-2 weeks per year of employment. Payments are taxed as normal income.

If you accept the retirement package, you will need to sign an agreement indicating that you will not sue your former employer.

If you are over 40, your employer must decide whether to accept the retirement agreement for at least 21 days. Elderly workers benefit from protection laws. If it is a group termination (meaning that multiple employees have lost their employment), you will have at least 45 days to accept a contract under the same law.

4. Health insurance coverage

Some employers can maintain employer-based medical, dental and vision coverage at no additional cost. You can also consider seeking reporting under your family or spouse.

If neither is an option, make sure you know what you know about federal laws known as the integrated omnibus budget settlement law. Cobra allows workers leaving their jobs to continue their health insurance if the company has more than 20 employees, typically for 18 months. Often you pay a 2% extra fee on the entire premium. This can be expensive when you lose your job.

Another option is to buy Health Insurance Market For planning. If you lose employer-based coverage, and sign up within 60 days of losing coverage, you will be eligible for a special registration period.

5. Look at the benefits of other companies

Payment for unused vacations including holidays and sick times. Some states require employers to pay workers for unused PTOs if they leave their job for any reason.

Company stock or retirement plan: Accounts like 401(k) and 403(b) are sponsored by your employer, so find out if you can place it wherever you place it or roll it into another investment account.

Company equipment. If you have a company laptop or mobile phone, you can store your equipment and buy it at a discounted price.

Additional benefits. Some companies help layoff workers find their next job by providing career counseling or resuming support.

6. Understand unemployment eligibility

If you are laid off and lose your job without your own disability, you will usually be eligible for unemployment benefits, but rules vary from state to state. You usually submit benefits in the state where you worked.

Please contact you State Unemployment Office Immediately after learning that your work has been cut. You can wait about 2-3 weeks before you receive your first unemployment check from the file.

Don’t rely on the benefits of minimal unemployment to pass through you. Most states offer unemployment benefits up to 26 weeks (approximately six months), with weekly benefits ranging from $235 to $823.

read more: How to submit unemployment benefits

7. Accumulate emergency funds

If you can find a savings area within your budget, build it Emergency Fund Top priority. a High-yield savings account It’s a clever place to hide your emergency funds as you earn interest and also have access to your money without penalties.

Experts generally recommend emergency funds that can cover at least six months of living expenses, but that is not possible for most households living payroll.

“Even a month’s worth of rent, anything you can put together will be useful,” Countryman-Quiroz said. Having even some emergency will not only protect you, but also provide peace of mind. “It comes from a position of power and choice, not one of rarity, despair and need,” she said.

8. Save your retirement account

If you suspect that a layoff is coming, don’t cache your 401(k) or other retirement account in panic. You can rent a 10% early withdrawal penalty In addition to income tax.

However, if you are currently making an additional contribution to your retirement account, DeMase recommends re-routing some of your spending into emergency savings, which can lead to fluidity if you lose your job.

9. Scrutinize your spending and debt

Creating a no-frills budget that covers only essentials will give you a clear plan of action in case you lose your job. Alternatively, if you’re short on savings, you can implement a bare bone budget to give you a safe cushion if your income hits.

If you have debt, try paying back what you can now so you don’t get caught up in the ever-growing interest cycle when you’re not paying.

Demase recommends starting to expand non-essential spending. Take a closer look at your budget and see what you need (home, groceries, debt, utilities, etc.) and options (subscription, dining out, holidays, etc.). Use a Budget app To find costs that can be reduced.

10. Find additional work and training

If you are worried about unemployment on the horizon, you may be able to look for alternative sources of income. Demase said he would consider it I’ll take on the side hustleWhile you are still employed, like freelance jobs or part-time gigs. Currently, having an extra income stream can help you save money and pay off your debts faster.

It is also a great opportunity to consider increasing your expertise and qualifications. Countryman-Quiroz says your employability by “future prevention” means building interpersonal communication, collaboration and technical skills, especially in the realm of AI.

Local nonprofits and workforce development organizations often provide free resources to build skills in new sectors.

Free and low-cost resources for job seekers

Cal Jobs: Cal Jobs offers a complete hiring tool for job seekers in California.

American Job Center Finder: Thousands of recruitment centers across the country help people search for jobs, find training and answer other employment-related questions.

LinkedIn Learning: LinkedIn offers video courses taught by business, creative, technology and certified industry experts.

Goodwill Industry: Goodren Career Center provides vocational training and placement services.