Dealing with Unemployment

Being unemployed at any time is rough enough but to be mid-career and mid-life at the same time can be especially challenging. I should know, I was there for six months so I'll share with you the gems I learned to not only deal with unemployment but also get out of the situation and land on your feet. Perhaps not easy street, but given the economy, a decent job is a god find. If it has decent benefits in this day and age it is even better. I'll let the reader decide if my path will work for them.

First off, hopefully you found yourself unemployed due to corporate layoffs and down-sizing. If you were fired for theft, lying or some other form of misconduct I can assure you that your path will be much tougher. If it is, you can recover but you will have to take a serious step down and perhaps be willing to do some jobs you didn't plan on working in your life.

For those without who just had the misfortune of being part of a headcount reduction I offer the following to assist you on the road to recovery.

First, keep in mind that being unemployed does not define you as a person any more than your job defines you as a person. Too many people wrap their sense of self into their job and when the job goes they have an even more difficult time with unemployment. At worst you will be unemployed for 4-6 months and during that time you have a lot to do so it is best to get busy and not delay getting started on the process.

Your new job is to find a job and to preserve cash, generate cash flow, avoid (like the plague) the use of credit and reduce expenses. Once you are unemployed things will be different, at least temporarily. The day after you walk from your old job visit the unemployment office, register for unemployment insurance/benefits and get to know the counselor. If you have a resume ready, great! If not, the unemployment office likely has computers, guide books in resume writing and access to many job boards of which you may not be aware.

Filing for unemployment will generate some cash flow. You need that and you will likely need more. One of the nice things about unemployment is that you can take a part-time job and earn up to a set amount without impacting your unemployment benefits. Some likely places are package shipping companies like UPS, FedEx and DHL. Being a morning or evening loader can pay an amount just under the cap for many states depending on hours and pay-scale. This can be hard work but if you are able it may help in more ways than one.

Don't hesitate to let your family and close friends know so that you can take advantage of connections. Many people get jobs strictly from the use of connections and it won't hurt you to do the same. A friend or family member may get you in the door but you still have to earn the job on your own merits.

To preserve cash flow you will need to resort to paying the minimum possible on each of your bills. If you have a mortgage, don't hesitate to call the note holder and explain the situation and see if you can go interest only for several months. The bank would rather work it out with you than have to deal with a foreclosure. By talking with them you may be able to avoid any negative impacts on the credit report that many employers check as part of background checks. Cancel the vacation and examine every expense to see where you can cut back. Cable TV, alcohol, cigarettes and top cuts of meat need to be put on the "it will wait until later list." You may not like that prospect but we are talking about financial survival here! Try soup and crackers for lunch and possible dinner. Try chicken instead of beef.

Don't forget, you still need to get that job! Set up a routine. Check the various job boards daily and be sure to include the ones you learned about at the unemployment office. Besides Monster, Yahoo Hot Jobs and Career Builder, you may want to check out the state jobs and even the city jobs that are posted. Don't neglect the federal job board at USAJOBS. The federal government may not pay all that much but they do have good benefits, an annual cost of living raise and regular "step" increases in pay for longevity. Get the local Sunday paper along with the local paper for nearby cities. Be ready to submit your resume as much as 30 times a week. This may mean that you develop more than one resume depending on your skills and the jobs you apply for. Don't neglect the cover letter and when you do get the interview make sure you follow up with a thank you note and express your interest in the job. Needless to say, your correspondence will need to be letter-perfect, but you have plenty of time!

When you get an offer, and you will! Weigh it carefully. The starting salary may be less than you were making but will it cover you for the new "leaner" life style you have discovered you are capable of living. Again, the nice thing about a federal job is that many of them come with periodic promotions for the first couple of years.

While you are looking for work you also have another concern and it will likely be a factor in deciding if you will take a job. That is health care. In some states unemployment will allow you to buy in a health care plan or you may be able to use the COBRA law to maintain your current coverage but it will cost you. Weigh the options carefully.

In time you will get that new job. Work at it like you are going to make it your career and do your best. Ask for work, they will likely enjoy having eager talent onboard. You may want to keep looking if the job isn't everything you wanted but remember, a bad job in bad economic times is better than no job at all. What will define you as a person, far more than any job you take, is what you will endure to provide for your family.

Hopefully you will get a job like I did that while I don't love it, it pays the bills, is bearable and it actually helps people who have it worse than I do which really isn't so bad. It kind of helps one keep the perspective on what matters in life.