With most leading economic indicators pointing toward continued tough times, many Americans are suddenly finding themselves out of work.
According to the Bureau of Labor Statistics, in April 2008, private-sector employment experienced declines for the fifth month in a row, with 29,000 jobs lost. The nation’s unemployment rate is now at five percent which means there are currently 7.6 million Americans looking for work.
“Every day, we hear about another major corporation cutting back and laying off hundreds and even thousands of employees just to deal with the downturn in the economy,” said Norman Wright, President/CEO of your BBB serving Northwest Florida. “And with credit markets tightening, not only are many Americans already struggling to avoid foreclosure on their homes, but now they have to deal with staying afloat without their previous income.”
Given that most job search processes take three to six months, getting back on your feet again isn’t only about the job hunt; it also requires a good grasp on handling benefits and managing a budget. Your Better Business Bureau offers advice for people who have recently been given the pink slip.
Say goodbye to the old job
Losing a job can be emotional, making it hard to think clearly; however, employees need to understand the terms of the situation including any benefits they are eligible to receive. Many companies provide a severance package and, by law, employees are entitled to any accrued vacation. Laid-off employees should consider asking their former employer for references to help with their job search.
Line up unemployment benefits and health insurance
It’s important to immediately apply for unemployment benefits through the state unemployment office since it may take up to three weeks to start receiving checks. Eligibility requirements typically consider wages earned, length of employment and reason for unemployment.
Employees who received health insurance under their former employee can apply for coverage under the Comprehensive Omnibus Budget Resolution Act (COBRA), which provides up to 18 months of health insurance after termination. Human Resources will have application information or visit the U.S. Department of Labor’s Web site, www.dol.gov.
Evaluate family finances and cut wasteful spending
Having and managing a budget is crucial to success in unemployed. Money will be tight and evaluating expenses and finding ways to cut costs will help a family get through. The worst thing to do is to ignore bills. Your BBB recommends keeping in contact with lenders to explain the current unforeseen situation and work to find solutions for weathering the financial storm.
Click here for additional BBB advice on creating a budget
Keep Busy
Job hunters should take inventory of their career and consider the opportunity to change occupations or relocate to a new city. Your BBB recommends filling the down time in a job hunt by volunteering, learning new skills or taking continuing education classes. Remember that many experts consider looking for a job a full-time job in and of itself.
For additional information and advice you can trust, start with bbb.org.
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