Job layoffs are increasing in frequency all across the country. Due to the poor economy, businesses in all industries need to reduce costs. Unfortunately, one of the most effective cost cutting measures is laying off valuable employees. You may be one of those employees.
Many laid off workers are given small severance packages, but no notices. They may arrive for work, work for two hours, and have a late morning meeting. After that meeting, they have one hour to clean out their offices or lockers and leave. On the other hand, you may be one of the lucky ones. Yes, you still got a layoff notice, but it is a pending layoff notice. You may still have a job for one month or one year, but the layoff is still coming.
Pending layoffs are different than immediate layoffs, so what should you do to prepare for them?
Estimate your unemployment. If you were laid off and do not have a second job, you should qualify for unemployment. Your state uses a specific formula to calculate your benefits. Find this formula on their website. Take your weekly unemployment benefits and create a monthly total. This is how much you have available to spend each month. If married or living with a romantic partner, add their income. This is now how much income your household as a whole has to survive on.