Layoffs have become a more common reality since the beginning of the COVID-19 pandemic.¹ In fact, by the height of the pandemic, tens of millions of Americans had filed for unemployment.² We’re also now seeing a new wave as businesses deal with the changing economy. 

Along with the initial shock of losing a job often comes a flood of other feelings, from anxiety, anger, and sadness, to shame, irritability, and plummeting self-esteem. You may be wondering how you’ll make ends meet, what you should do next, and what people will say. It’s important to understand that these feelings are common, and it’s completely normal to go through a period of grieving after being laid off.

But a layoff can actually open up space for a new opportunity that you never would have found otherwise, prompting you to make a career change or start a business. To rebound and find your new path, it’s important to protect your mental health so you can begin thinking about your future — whatever it may hold. How can you do this? Here are four steps you can take.

1. Optimize your finances

Much of the stress you feel after a layoff comes from losing financial security. When our food, shelter, or safety is at risk, it sets off alarms in both our conscious and unconscious minds. Furthermore, you may not be ready to sacrifice your standard of living. With this in mind, it’s important to take proactive steps to ensure your needs will be met.

Run lean, reduce expenses

An important first step is to analyze your full financial picture. Review your accounts and take note of income and expenses. Decide which of your expenses can be reduced or eliminated and which are non-negotiable.

Many people have several monthly subscriptions that they hardly use, if at all. If you find you aren’t using something, cancel it. Food costs are another common money vacuum. Think about how you can reduce costs by meal planning and eating at home.

You want to get your expenses as low as possible so that the money you have during this time goes further.

Build your savings, however modest

Next, factor a savings plan into your budget, no matter how small. It can help you feel better as financial security is tied to higher confidence levels and a greater sense of overall wellbeing. Commit to growing your savings account by a specific amount each month, so you have more of a safety cushion.

Once you have a plan, stick to it. If you have a partner or children, you can get everyone on board with the plan so you can work together and hold each other accountable. Make it a game and turn it into a learning experience.

2. Connect with other professionals

Stay connected and network. During this time, many professionals who can’t network in person are diving into online platforms such as LinkedIn and even Facebook. Take advantage of the opportunity and jump in, too. Create a profile that shows off your skill set and work history and start making connections. You may be surprised at the opportunities you find, or that find you.

3. Realign and focus on the future

Being laid off can be a blessing in disguise. It can open a door that you’ve always wondered about but were too busy to explore. Take some time to digest the situation and think about what you really want to do for future work.

It may help to spend some time doing activities that bring you joy — whatever helps you gain clarity. Keep your focus on constructive thinking. What do you want to do next? What are the steps to get there?

4. Get support

Losing a job is never easy, even under ordinary circumstances. And, recovering after a layoff can be easier said than done. The resources and interactive planning tools on Living Confidently provide you with knowledge that can help you reach a healthy state of financial and emotional well-being, including this article that shows you how you can  make the journey easier for you and your family, and how you can protect yourself and your loved ones now for the future.

Don’t be afraid to reach out for a helping hand. If you continue to struggle with your mental health, you may want to consider reaching out to a mental health professional or doctor as they can offer specialized help in recovery.

Brought to you by The Guardian Network ©2018, 2022.  The Guardian Life Insurance Company of America®, New York, NY

The Guardian Network® is a network of preferred providers authorized to offer products of The Guardian Life Insurance Company of America (Guardian), New York, NY and its subsidiaries. Material discussed is meant for general informational purposes only and is not to be construed as medical advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. You should always consult a licensed professional when making decisions concerning your health care. 

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2022-144747 Exp. 10/2024