Depending on your situation, a layoff can be an unsettling experience, especially if it was unexpected. Not surprisingly, the coronavirus outbreak has triggered unprecedented mass layoffs and furloughs, with over 10 million Americans filing for unemployment in March. If you are one of those people, you may be scratching your head wondering what’s next. Fortunately, a layoff doesn’t have to damage your career. In fact, it could just be the best thing that ever happened to you. Here are some ways to not only recover but also make the most of it.
1. Don’t panic
First, don’t let stress and anxiety get the best of you. Obviously, a layoff can be jarring, especially if you are supporting a family. But fortunately, and especially in today's environment, there are many resources to lean on through this difficult time. The very first thing I would do is to apply for unemployment benefits. They exist precisely for this purpose—to get you through a challenging financial situation—so take advantage of them. You will likely need the additional resources to make it through the next several months.
2. Seek relief
Many creditors and service providers are creating and implementing policies to assist consumers through this crisis. Contact your bank or mortgage company to inquire about delaying mortgage payments. Currently, the government is mandating that all borrowers with government-backed mortgages be allowed to delay at least 90 days of monthly payments and possibly up to a year’s worth. Many credit card issuers, like Citibank, are allowing qualified customers to participate in forbearance or other hardship programs due to COVID-19. Just make sure to weigh the pros and cons before signing up. Another option is to postpone your car loan payments. BMW, for example, is allowing its customers to defer payments for up to two months (interest will still accrue) without any paperwork or application process.
3. Let go of the stigma
If you are feeling depressed because you were recently part of a layoff, don't. There are close to 17 million people in the same boat, by no fault of their own. Also, remember that there is a difference between being laid off and getting fired. You are fired as a result of something you’ve done. Being fired is a permanent termination of employment, generally "for cause," like poor performance. Being laid off is the result of circumstances beyond your control—like the current economic situation. It’s important to understand the distinction so you can explain it to future employers.
4. Take a step back
Finding yourself without a job can give you time to take a step back to analyze your situation. Reevaluate your personal and professional goals. Do you realize that your identity was completely wrapped up in your job? Did you even enjoy what you were doing? Before the layoff, were you already thinking of making a career change? If that’s the case, this might be the moment to consider a new direction. Make a list of the activities you are good at that you also enjoy. That is the sweet spot if you’re seeking maximum career fulfillment.