Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
6 Moves to Make Now if You Think You Might Get Laid Off
By Sarah Hansen MONEY RESEARCH COLLECTIVE
The labor market is strong, but you should still be prepared.
Even as unemployment is near record lows, it may feel like layoffs are everywhere. The tech sector is struggling, and major companies like Wayfair, Best Buy, Walmart, Oracle, Apple, Victoria’s Secret and Ford have said they will cut staff.
That’s likely only the beginning. New data from an August survey conducted by consulting firm PwC found that roughly half of executives and board members said their companies are reducing their overall headcount, or have a plan to do so. Another 52% said they have instituted a hiring freeze, and 44% said they’re rescinding job offers.
Even though the labor market is still strong in other ways (more on that later), the prospect of an impending layoff can be unnerving. So, like it or not, you may be forced to look for a new job in a hurry.
Job search tips when you’re worried about getting laid off
If you think your job might be in jeopardy, it’s wise to take action sooner than later. Here are six steps you can take now to be prepared in case a layoff does happen to you.
Update your resume
No matter where you are in your career, it’s pretty unlikely that you’ll ever navigate the hiring process without needing a resume at some point — even if it’s just as a formality.
Scott Dobroski, Vice President of Corporate Communications at job search site Indeed, tells Money that making sure your resume is up to date is the single most important step to prepare for an unexpected layoff and job search. “That is still a tool that almost every single employer will ask for, want or need,” he says.
You should make sure that your current job and responsibilities are up to date and remove any information that’s unnecessary, outdated or no longer relevant for your field. If a layoff does happen, you can hit the ground running only if your resume is ready to be sent to hiring managers.
Money also has some advice for how to make your resume stand out from the pack.
Tap your network
Not everybody loves networking, but it’s a common way to get a job. Now is the time to start checking in with your former colleagues, friends and industry contacts. You might even hear about open roles before they’re posted publicly.
While you’re at it, Dobroski says this is also a great time to expand your circle by joining professional organizations and industry groups, whether virtually or in person. You might make new connections that lead to job offers down the road.
Start the job search
If you’re fairly certain a layoff is coming your way, it can’t hurt to get ahead on the job search. You can start slowly at first — Dobroski recommends setting up job alerts for open positions in your field. He says those alerts can give you a window into what employers are hiring in your location (or remotely) and what types of roles they’re looking to fill.
Once you learn more about your options, you’ll be better prepared to tailor your resume to specific openings and start applying.
Get your emergency fund in good shape
It’s always a good idea to have an emergency fund — enough cash to cover somewhere between three and six months of expenses socked away in a savings account for a rainy day. If you suspect a layoff is coming your way, it’s time to check in on those savings.
Will they be enough to sustain you through a job search? Consider bulking up your balance to account for an unexpectedly long period of unemployment.
It’s never too late to start saving for emergencies or to boost the savings you have. Are there any expenses you can trim from your budget, like streaming subscriptions or gym memberships? Divert that money to savings. Can you afford to set aside a few extra dollars from your current paychecks? Even a small amount can help.
Think about job benefits
Your employer may have severance benefits in place. It’s not a bad idea to do some quiet digging to understand what policies will apply to you before you need them.
You should also make sure you understand your state’s unemployment insurance policy and the requirements you’ll have to meet to collect unemployment payments.
Don’t panic
Getting laid off can be scary, but remember: This is still a very strong job market. U.S. employers added 528,000 jobs in July, according to data released earlier this month by the federal government, and the unemployment rate has dropped to 3.5%.
“While the broader economy is slowing, the labor market is still a bulwark holding back a rising tide of recession fears,” Glassdoor Senior Economist Daniel Zhao wrote in a recent blog post.
That’s good news for workers. In the meantime, you should communicate and stay on good terms with your boss and keep doing your very best work. This could help with a recommendation down the line, should you need one.
More from Money:
Use This Script to Ask for a Raise in 2022
Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. She completed her master's degree in business and economic reporting at New York University. Before becoming a journalist, Sarah worked as a paralegal specializing in corporate compliance.