The unemployment rate of the United Kingdom rose to 4% in May 2023 from 3.8% in April. As per Statista, it is the lowest rate since 1974. The primary increment in the rate is because some individuals are out of work due to looking after family or home. A great proportion of the unemployed includes those with long-term health concerns.
Losing your job can be a harsh concern whether you have been fired or laid off. Your career, finances, and self-esteem may hit hard. It can have an immediate effect on your budget, your family and your life goals. Losing your mind would not ease the situation. You should take the lead and explore what’s still yours. Claim it and revise the life gear. If you are clueless about the same, the blog may help you.
What immediate steps to take after unemployment?
Losing your job may impact your sense of job security and well-being. Knowing the steps to take can help you handle the situation stress-free. The right move can also help improve your career. Here are some steps to take immediately after unemployment:
1) Identify the benefits of to claim
Depending on the circumstances, you may be entitled to redundancy pay or unemployment benefits. The respective employer you used to work for provides redundancy pay.
While the government provides unemployed benefits or jobseekers allowance for those, who lose their jobs with no fault of their own, discuss the redundancy pay from your employer of the HR of the firm. Ask about the timeline and when to expect it to get credited to the account.
Unemployment benefits income helps you protect your savings. The payments help bridge the gap for the essentials until you get a new job.
2) Develop a budget again
While you may be budgeting all these years, now you should be more specific. Reconsider your liabilities and essential expenses and draw a budget. It may include cutting additional expenses that you skipped earlier. It could be anything like- frequent dine-outs, shopping, or house decorative items.
Calculate the critical monthly payments like- mortgage, utility bills, child’s school fees, energy bills, etc. Halt streaming services for some time. It would help you save goods until your income returns back to normal.
3) Check the emergency fund
Financial management before unemployment reveals how you will get through it now. Having an emergency fund reveals how smart you are with finances. If you had one, you want to tap it now. Experts recommend having 3-6 months of untapped savings for situations like unemployment.
The amount will help cover important expenses if benefits alone do not suffice. It would help you maintain your lifestyle while searching for another job. After getting suitable employment, you can begin saving for employment funds again.
You cannot tap emergency funds often. Be smart with the withdrawal.
Alternatively, if you lack an emergency fund, the situation gets problematic. In the absence of additional financial flexibility, part-time jobs can help you. Having one not only helps with everyday financial needs but also qualifies for affordability loans with no credit check from a direct lender for your needs. These loans help you with critical emergency requirements without impacting your credit score. Your part-time job can get you one immediately.
4) Update your CV and cover letter
As you begin the job search, ensure that your CV and Cover letter are up to date. It must include the most recent work responsibilities, skills and experience. Customise your CV and cover letter as per the role in organisations. It will help recruiters and interested employers view your profile accordingly. Identify the keywords from the job descriptions and highlight them in your job profile. It would help you improve your reach in the employer’s search.
Refresh the appearance of the CV. Ensure that it seems easy to read and scan. Avoid adding long paragraphs. Bullet the specifics or something you want the recruiter to notice.
Limit the length of your CV to a maximum of 2 pages, and the cover letter should not exceed a page. If unsure about writing the best cover letter, ask your friends or hire professional services. A cover letter is critical to get the best-rated job.
5) Update your skills
Identify the job market and the critical skills you need to succeed in it. Check the growing industries as per your area of expertise. Analyse the high-paid jobs and the skills they require. Check whether you have those skills or not. If not, it is the right time to gain some knowledge. It will not only help you crack better offers but help you have an edge over the competition.
Skills are something that helps you gain the best package within the industry. It would be ideal to work on these meanwhile. You do not have to go for the paid training and courses every time. You can get plenty of free courses online that even provide certifications. Nurturing your skills makes you a better person in the professional and personal journey. Do not miss any inch of it.
6) Claim a tax refund
You may be in for a tax refund if you paid extra on any of these things:
- Pay from a job
- Job expenses like working from home
- A self-assessment tax return
- A redundancy payment
- UK income if living abroad
- Interest from Savings or Payment Protection Insurance
- Income from a life or pension Annuity
- Foreign Income
In any of these payments, you can claim a tax refund. It would help you ensure financial flexibility until you get a suitable job opportunity.
7) Check your debts
Before unemployment, you may have some financial engagements like- payday loans, credit card debts, or other debts. You may not clear mortgage or student loan debt; check the ones you can. Unemployment leaves you with little flexibility to pay debts.
However, leaving them on hold only attracts interest costs and penalties, making the loan costly. Check loans for the unemployed in the UK from the best providers and clear your dues. These loans are specifically for out-of-job individuals seeking a little financial flexibility. Reducing debts grants peace and helps concentrate on other issues hassle-free.
These are some critical steps that you should take after unemployment. It would help you manage finances well and avoid panic-like situations. Moreover, these tips help you prepare for a balanced lifestyle and improve your career goals and possibilities. Resist making frequent withdrawals from emergency or retirement funds. Instead, manage the short-term job loss with the best part-time opportunities.