18 Critical Steps to Take When You’ve Been Laid Off

As of late April, there were at least 33 million people unemployed in the United States. Since March 13 alone, some 26.5 million people filed jobless claims. Being laid off and faced with the challenges of conducting a job search, tightening your household budget, and still managing to pay essential bills and put food on the table can be daunting and overwhelming. To help with this challenging time, we asked both career and personal finance experts to weigh in on the best steps to take immediately after being laid off. Here’s what they had to say. (If you know someone who's lost their job, here are 22 Ways to Show Support.)

The first and most obvious step to take after being laid off to apply for unemployment benefits. But be aware that many states are experiencing overwhelming demand right now, including longer call-in and online filing wait times. This could mean unemployment checks may be delayed. “You can't focus on recovering until you have your basic needs secured,” says Fletcher Wimbush, owner of two companies in the hiring and recruitment space, Wimbush & Associates and The Hire Talent. Applying for benefits can typically be done online through your state’s unemployment benefits website.

With your income stream suddenly coming to a halt, you’ll also want to spend some time focusing on protecting your housing, says Wimbush. “Work with your landlord or lender to delay payments,” Wimbush said.

Another critical early stage step is developing a revised household budget, one that takes your new reality into account. “Create a personal and family financial plan that includes assessing what are necessary and unnecessary expenditures and begin cutting where you can ASAP,” says Wimbush.

Related: The Best Ways to Reduce Monthly Bills and Expenses

You may only be able to continue covering the payments for some of your monthly bills, so be sure to decide early on which of those bills you will direct your remaining money toward, suggests Jacques Buffet, career expert for the resume website Zety. Buffet recommends focusing on food and housing costs, such as a mortgage payment, above all else. “COVID-19 will keep you away from entertainment and traveling anyway,” says Buffet.

If you’re currently paying debts, like loans or credit card balances, immediately contact lenders and credit card issuers to discuss what types of relief are available to customers, says Sean Messier, credit industry analyst for Credit Card Insider. “Many major credit card issuers are allowing cardholders to defer payments, waiving fees, and even reducing interest rates on carried balances,” says Messier. “Relief is often available on a case-by-case basis, so contact your issuer promptly, ideally online, since phone wait times have grown so long, to discuss the issues you’re dealing with.”

The most critical thing to do after filing for unemployment is to decide how to provide health insurance for yourself and your family, says Laura Handrick, a contributing human resources professional at Choosing Therapy. “It's great if your spouse still has a job that provides insurance, but many don't,” says Handrick. “You have a limited window of time, 30 days, to shop for health insurance through the healthcare marketplace at healthcare.gov per the Affordable Care Act (ACA). The marketplace is likely to be your lower-cost option.”

Though it may sound counterintuitive, Harvard Business School Online Executive Director Patrick Mullane says that if you’ve recently been furloughed, you should make “applying” for your old job task No. 1. You would do this “to ensure you remain top-of-mind in the interim,” Mullane said. “Make an email pitch to your employer about the skills and traits you brought to your role that make you indispensable.”

As you part ways with an employer or company, it’s a good idea to request a few written recommendations, and also LinkedIn recommendations, says Biron Clark, founder of CareerSidekick. “Most professionals don't have any recommendations on their LinkedIn profile, so this is a great way to stand out in your job search, and many hiring managers check your LinkedIn profile even if you applied via a different channel,” Clark said.

Related: 26 Ways Social Media Can Land or Lose You a Job

In addition to seeking recommendations from a former supervisor or colleagues, make a point to request a “laid-off” letter from the company’s human resources department if you haven’t already received one, says Leslie Tayne, a debt-resolution attorney, author of "Life & Debt" and founder of Tayne Law Group. This letter may come in handy when filing for unemployment benefits.

Beyond simply filing for unemployment, there may be other programs that can make this difficult time less stressful and challenging, says Tayne. “Look into your state’s other benefit programs to help you get by while you’re not working. Benefits can include the Supplemental Nutrition Assistance Program (SNAP) and the Low Income Home Energy Assistance Program (LIHEAP),” Tayne said.

Try to avoid falling into a rut of depression and inactivity if you’ve been laid off. Create the parameters for a new daily routine immediately. “This is key to maintaining mental health and staying productive while unemployed,” says Clark of CareerSidekick. “Have a set time that you shower, eat breakfast, and begin working on your job search. Include exercise, too, ideally. If you do this, you'll be more productive and maintain better mental health.”

Related: 45 Job Search Tips From Experts

In the days after being laid off, you should immediately update your online professional profile and resume, optimizing them with keywords so search engines can find you, says Mullane of Harvard Business School Online. “Post your resume on all job boards, including LinkedIn, Indeed, and Glassdoor,” he adds.

This effort can include posting to your LinkedIn network, announcing that you're looking for work, explains Mullane. You might also ask your former boss to do the same with his or her LinkedIn network. “Research shows that upwards of 85 percent of jobs are filled through networking, so, by reaching out selectively to those you know and trust, you will get ideas, leads, introductions, and maybe even a job,” Mullane said.

After being laid off, it’s a good idea to take an inventory of your skills and think through new roles or industries where there may be opportunities, says Mullane. “You may need to acquire new skills, which could be a good use of your downtime during this period of isolation,” adds Mullane. “By taking online courses, not only can you gain new skills, but they may also be key to you finding your next job.”

Want to help further distinguish yourself as you embark on the search for a new job? Wimbush suggests spending some time after being laid off developing a video interview of yourself that outlines your skills and talents. “Post it on your Linkedin profile so you can better showcase your significant achievements and cut through all the noise,” he said.

Let your insurance company know that you’re being financially affected as a result of COVID-19. Many financial companies and service providers are offering financial assistance to their customers, but the assistance isn’t automatic, says Tayne, who suggests you may also want to “reduce coverage if you’re not driving as much and remove drivers if individuals in your household aren’t driving at all.”

Be sure to join groups on Facebook and LinkedIn for professionals in your industry so that in addition to regularly networking, you’re always up-to-date regarding possible job opportunities, says Tayne.

Taking care of your mental health is as important as taking care of your budget you’re your housing. Find something that you can engage in that allows you to be creative and gives you time to be peaceful, says Dana Case, director of operations for MyCorporation. “This can be anything from rollerblading to painting or reading a book,” says Case. “It's easy to feel overwhelmed by these setbacks, and it can sometimes be difficult to shift your focus to doing anything but concentrating on those negative things. Engaging in this kind of behavior, where one shuts down and focuses solely on the upsetting aspects, is a detriment to your mental health and makes it much harder to get back up, keep moving, and keep going. Show yourself grace during this time and take care of yourself. This too shall pass."