If you're navigating a job loss or a friend is struggling, these four strategies can help you cope with layoffs and build resilience.

If you've been keeping up with the news lately, you've probably seen a few headlines like this one:

“Job Cuts Surge: XYZ lays off hundreds in (country/job sector)”

In 2023 alone, Layoffs.fyi, a layoff tracking website, indicated that 262,242 employees were laid off from over 1184 companies!

This marked a 29% increase over the previous year’s figure of around 164,769 employees.

But that is not all the worst of it. These numbers reflect only those laid off in the tech companies and startups, suggesting that the actual number is staggeringly much higher.

Regardless of the frequency of layoffs, getting fired by an employer to whom many have committed days, if not months, of their lives, is difficult and can negatively impact their lives.  

Through this article, we will outline some of the negative effects of job loss on individuals in addition to detailing steps that one can consider to cope with being laid off. 

Shortcuts For The Busy Reader

What Are the Effects of Job Loss?

How Do You Cope With Layoffs?

1. Grieve

2. Take Care Of Yourself

3. Reflect and Career Goals

4. Stay Positive and Open-Minded

What Are the Effects of Job Loss?

Job loss can adversely impact not just one's financial stability but also one's identity, relationships, and health. So let us look at these factors in detail. 

On Identity 

A prominent effect of layoffs is on one’s identity. For many individuals, jobs are more than just a paycheck. For starters, experts suggest that having a job in the first place is linked to our self-worth and self-esteem. Additionally, being employed provides your life with structure, a sense of purpose, social connections, and skills and competencies that can help you flourish.

Over time, through our experiences and feedback, these factors contribute to our identity. As a result, when one is terminated, they lose their sense of identity, suddenly experiencing a void.

On Relationships

Job loss can have a significant impact on familial stability. 

A recent 2022 study of married couples in Germany found that a husband’s involuntary job loss significantly increased the risk of divorce by 54-74%! Not just that, the unemployment of one partner results in a decline in life satisfaction for both partners. These findings suggest the subtle yet significant role of our employment status on our relationships.

Children, too, bear the brunt of parental job loss. Studies suggest that fathers losing their jobs can trigger anxiety and depression among children, while mother’s job loss can result in them experiencing frequent infectious illnesses. In addition to health, research also suggests that it can negatively impact a child’s academic performance and, in some cases, can also result in the child dropping out of school. These studies underlie the seismic shift that job loss can have on our family dynamics. 

On Health

Losing your job can hurt your health, both mentally and physically.

Studies conducted during the COVID-19 pandemic, for example, found that those who were laid off showed an increase in symptoms of depression and anxiety when compared to those who remained at their jobs. These individuals are less likely to be satisfied with their lives and are more likely to experience psychological distress. The consequences extend well beyond mental well-being, with job losses increasing the risk of cardiovascular disease and stroke.

Furthermore, the stress of job loss can trigger unhealthy behaviours. For instance, it can result in smoking initiation among non-smokers, increased smoking in existing smokers, and higher rates of alcohol-related hospitalisation in both men and women. These behaviours not only affect the individual but also their families and society as a whole.

How Do You Cope With Layoffs? 

We have explored the significant impact job loss can have on our lives. But how do we work towards reducing its effect? For this, we have to turn our attention towards helpful strategies that can help you navigate this challenging time.

1. Grieve 

Being let go of your job is a big loss, and you need to deal with the emotions that are associated with it. Do not suppress your feelings at this stage, as it can bring up issues at a later point. Instead, give yourself ample time to grieve. Here are five prominent emotions you might experience, as detailed by Elisabeth Kübler-Ross, a psychiatrist in her stages of grief model. 

Denial: You are in shock when you hear the news, which can last for days if not weeks. The first response tends to be, "This can’t be happening to me.” It might also give rise to the belief that the management might change their decision. 

Anger: You realise that you are going to be out of a job, which might lead to anger. Anger could be directed towards your former employer and management. At times, you might even lash out at friends and family members. 

Bargaining: You begin to bargain with your former employer to reverse the current situation. This can involve visiting your former employer and offering to work for half the pay, without benefits, or even part-time. Sometimes, the bargaining can take place with a religious or spiritual higher power rather than your place of work. 

Depression: When you realise that anger and bargaining are not going to get your job back, you might experience depression. Through this stage, you begin to come to terms with the loss. 

*Note: If you experience unhappiness for a prolonged period, we request that you talk to someone or seek professional help.

Acceptance: You might enter this stage even before the depression stage has ended. Regardless of whether the layoff was your fault or not, you have learned from the experience and have prepared yourself to move ahead. 

There is no fixed period for how long each stage will last, so you might be in denial for less than a day but be angry for even a year. Not only that, it is not necessary that you go through all the stages of grief, i.e., you might just skip one or go through all of them. Regardless of how you experience grief, know that it is normal and part of the process. 

2. Take Care Of Yourself 

You are bound to experience a slew of negative emotions, including shame and guilt. Beating yourself about losing your job might not be ideal. Instead, channel your energy towards being more compassionate towards yourself. 

Participate in activities that make you feel good about yourself. Look after your physical health, get ample amounts of sleep, eat well, and take a short vacation if you can; if not, take time off at home.

Use this time to also reconnect with people, whether they're friends or family. Having a conversation with loved ones during difficult times can improve how you feel. Not just that, according to recent research, the presence of social support reduced a person’s worry about job search. 

Lastly, create a set routine for yourself. This will give each day a structure and a goal that you will be working towards. 

To learn more about self-care, check out our article: The 5 Types of Self-Care and Why Is It Important?

3. Reflect and Career Goals

The period when you are between jobs is perfect for reflection. Ask yourself questions like:

• What were the aspects of your last job that appealed to you? 

• What aspects of your job would you like to do more of?

• Would you like to continue in the same sector as your previous job or explore new opportunities?

• Would you like to pivot to go after an aspiration that you didn’t have the opportunity to pursue?

• What training and skills will make you better at this job?

By answering such questions, you will have a clearer idea of what opportunities you want to seek out. Not only that, but they will also be helpful when creating new career goals.

Create a list that highlights your strengths and weaknesses. Identify how each of them is getting you closer or further from your goals. Where there is scope for development, work towards improving yourself. In addition to this, connect with individuals in the industry you are interested in, as they can assist you in moving forward. 

4. Stay Positive and Open-Minded

This might not be something you want to hear, but try to incorporate positive thinking. Although this would undoubtedly be incredibly stressful, focusing on and appreciating the positive aspects allows you to gain perspective and find the strength to move forward, even in the face of adversity.

For example, you can view being out of work as an opportunity to get a fresh start, time to spend with your loved ones, explore different opportunities, pursue something you are passionate about, etc.

It is this optimistic outlook that will be of help to you when you return to the job market. And when you do, don’t be stuck up on a preset notion in your head, as you might just miss out on opportunities that just pop up. 

We cannot stress this enough; being laid off is a huge financial and emotional setback in one’s life. As we explored through this article, it can impact how we perceive ourselves, our relationships with our loved ones, and our well-being. Therefore, it becomes crucial for us to utilise strategies that not only help reduce the negative effects but also empower us to seek out better opportunities out there.