A recession is a period of economic decline characterized by falling GDP, employment, and consumer spending. When a recession hits, businesses often cut costs by laying off workers. If you’re worried about being laid off, there are steps you can take to prepare.
Build an emergency fund
An emergency fund is a savings account that you can use to cover unexpected expenses, such as a layoff. Aim to save at least three to six months of living expenses in your emergency fund.
Update your resume and start networking
Even if you’re not currently looking for a new job, it’s a good idea to keep your resume up-to-date and start networking. This will help you stay connected to your industry and make connections that could come in handy if you do lose your job.
Develop new skills
In a recession, it’s more important than ever to be marketable. Consider taking classes or workshops to develop new skills that could make you more valuable to employers.
Be prepared to negotiate
If you are laid off, you may be able to negotiate a severance package. This could include things like pay for unused vacation days, outplacement services, or continued health insurance coverage.
Losing your job can be a stressful and emotional experience. It’s important to stay positive and focus on your next steps. Remember that you’re not alone and that there are resources available to help you get back on your feet.
By taking these steps, you can increase your chances of weathering a recession and landing on your feet if you do lose your job.
Here are some additional tips to help you prepare for layoffs in a recession:
- Review your budget and make sure you can live on less income.
- Pay down debt, especially high-interest debt.
- Consider getting a part-time or freelance job to supplement your income.
- Stay up-to-date on industry trends and developments.
- Network with people in your field.
- Be proactive in your job search.
By taking these steps, you can increase your chances of being prepared for a layoff and finding a new job quickly.