What to Do If You’re Laid Off: 6 Essential Steps

Getting laid off from your job can be a devastating experience. Whether it was unexpected or something you saw coming, the reality often is difficult to face. It’s natural to feel overwhelmed and wonder what to do when you get laid off. Although it’s a significant setback, it doesn’t have to be the end of your career. 

By acting quickly and taking a series of practical steps, you can regain control of your professional and financial situation. We’re going to talk about six essential steps you should take after getting laid off, including applying for benefits, evaluating health insurance, adjusting your budget, finding temporary income, updating your resume and taking care of yourself.

1. Apply for Unemployment Benefits Immediately

The very first step you should take is to apply for unemployment benefits. These benefits can provide a financial cushion while you search for your next job. 

Visit your state’s unemployment office website and submit a claim. To make the process as smooth as possible, gather relevant information such as your Social Security number, ID, previous employer details, dates of employment and the reason for your job separation. The sooner you can start receiving benefits, the better.

It’s also important to keep in mind that some states require you to apply for jobs weekly to keep receiving benefits and file a weekly certification. Make sure you understand the requirements.

2. Review Your Health Insurance Options

Losing your job often means losing your employer-sponsored health insurance. However, you still have options to maintain coverage. One option is COBRA, which allows you to continue your previous employer’s insurance plan for a limited period, though it can be expensive. 

Alternatively, you can look into getting on your spouse or partner’s health insurance plan. (If you’re younger than 26, have no children and aren’t married, you could also get on your parents’ plan.) Or, you can explore the Health Insurance Marketplace to find more affordable plans. Visit HealthCare.gov to find subsidized plans. You’ll have 60 days from when you lost your job to enroll in a new health insurance plan. Low-income individuals and families can also look into Medicaid and the Children’s Health Insurance Program. 

3. Cut Expenses and Adjust Your Budget

Now is the time to take a hard look at your finances and revise your budget. Review your monthly expenses and identify areas where you can cut back, such as with dining out. If you’re not sure where to start, we’re a big fan of budgeting apps like Cleo, Rocket Money and YNAB. 

Other ways to reduce expenses include: 

• Cancel or pause non-essential subscriptions (streaming, gym memberships).
• Use a balance transfer card to get a break on interest payments. Check out our list of the best balance transfer cards.
• Negotiate bills (utilities, phone, internet) for lower rates.
• Use grocery rebate apps like Fetch Rewards or Ibotta to save on food costs.
• Look for ways to save on auto insurance using The Penny Hoarder Auto Insurance Tool.

4. Look for Side Hustles or Temporary Income Sources

While searching for a new full-time position, consider pursuing side hustles or temporary work to bring in some income. Freelancing, gig work, tutoring and part-time jobs are all viable options. These likely can’t fully replace your full-time income. However, anything helps, and sometimes freelance work can lead to full-time opportunities.

Best Side Hustles for Quick Cash:

• Freelancing: Offer skills on gig apps like Fiverr or Upwork.
• Drive: For Uber or Lyft, deliver food via DoorDash or shop for Instacart.
• Online Surveys & Market Research: Earn extra money through Swagbucks, InboxDollars or UserTesting. In fact, we have a whole list of apps that can help you make $100 a day.
• Sell Unused Items: List electronics, clothing or furniture on Facebook Marketplace, eBay or Poshmark.

5. Update Your Resume and Start Job Hunting

Take the time to update your resume and LinkedIn profile as soon as possible. The sooner you apply for jobs, the quicker you’ll land one. Highlight your most relevant skills and accomplishments, and tailor your resume to fit the type of job you’re seeking. If it’s been awhile since you’ve touched your resume, you could get free or low-cost help through career centers and nonprofits. 

Networking is also crucial during this period. Reach out to former colleagues, attend industry events and make use of online networking platforms. Then, use job search platforms like Indeed, ZipRecruiter and Glassdoor to find opportunities that are a good fit for you.

6. Take Care of Your Mental and Financial Well-Being

Getting laid off can take a toll on both your mental and financial health. Feel your feelings and get support where you can, whether it’s from friends, family or professional counseling services. You may even want to join job-seeker groups or talk to a financial advisor.

It may feel like all you should do is focus on finding a job. But it’s also important to stay active, maintain a healthy routine and engage in activities that bring you joy and relaxation. At the same time, keep a close eye on your finances, stay organized and continuously revise your job search strategy if needed. Remember, resilience and adaptability are your greatest assets at a time like this.