Steps to Handle Unemployment
Unemployed? There's a lot of that going around. As of March 2011, the overall unemployment rate in the United States was 8.9 percent. Some areas reported much higher unemployment rates, and underemployment rates, which track the percentage of workers who must make do with part-time work or jobs ill-suited to education, background and experience, is higher still.
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Cut expenses
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Your first step is to cut your monthly expenses. Go through your budget and slash everything that is possible. Take a hard look at food expenses. Dining out is a significant cost for people who are employed. You can save a significant amount of money by resolving to brown-bag your lunch and eat a home-cooked dinner.
Secure Health Insurance
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For many workers who are relatively young and healthy, you may be able to replace your workplace coverage with a personally owned health insurance policy. See what happens to the monthly premium when you raise your annual deductible. Some states require insurers to issue an individual policy for not more than a certain price compared to the premium for the workplace policy---for example, the new policy cannot cost more than 115 percent of the old policy. In other cases, workers may need to take advantage of COBRA continuation coverage. Ask your supervisor or HR professional about how enroll in COBRA. If you allow coverage to lapse, you may not be able to get an individual policy later, if your health condition should change.
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Understand the Tax Rules
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You can deduct the cost of a job search, provided you are searching within your established trade, profession or industry. You can deduct the cost of most job search expenses, including personal career coaching, resume printing and preparation, and headhunter fees, provided you are not trying to enter a new profession. You can also deduct unreimbursed education costs, provided you are not enrolled in a degree program that would qualify you for a new profession.
Work Full Time on Finding or Creating a New Job
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You are likely accustomed to working eight-hour days or longer. Strive to devote the same focus, energy and drive to your job search for at least the same amount of time as you spend working each day. Establish a home office to coordinate your job search. Keep expenses low, but don't be a hermit. Let everyone know that you are looking for a new opportunity. They will become your eyes and ears and may let you know of employment opportunities even before they are advertised.
Apply for Unemployment Benefits
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Your former employer has likely been paying into a state or federal unemployment fund. Depending on your circumstances, you may be able to qualify for unemployment benefits, which is a percentage of your previous earnings. Contact your state unemployment insurance office for specifics. If you belong to a union, you may have been paying into a union unemployment insurance fund as well, and you may qualify for benefits. State unemployment benefits are generally taxable; benefits paid with your own money are generally not taxed.
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