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Losing a job can feel like the ground has shifted beneath you. The mixed emotions can be overwhelming, whether unexpected or something you saw coming. On top of that, financial concerns can add an extra layer of stress.
But take a deep breath. While job loss is undoubtedly challenging, it’s a turning point that can lead to new opportunities, growth, and even a better career fit. You are not alone, and you have options.
This guide will walk you through what to do after losing your job. Your next chapter starts now — let’s take it one step at a time.
Jump to the following section:
Fired vs. Laid Off: What’s the Difference?
You lost your job, but were you fired or laid off? How do you tell the difference? It comes down to the reason for job separation:
- Fired: This happens when an employer terminates an employee for performance issues, misconduct or violating company policies.
- Laid off: A layoff occurs when an employer eliminates a position for reasons unrelated to the employee’s performance, such as budget cuts, company restructuring, downsizing, or economic downturns.
Knowing whether you’ve been fired or laid off is essential for your next steps. The conditions of your recent unemployment will determine whether you qualify for unemployment benefits, severance pay, or even the possibility of a rehire.
Can you get unemployment if you were fired or laid off?
Laid-off employees qualify for unemployment benefits because their unemployment was not their fault. Depending on company policies, they can receive severance pay or be rehired if business conditions improve.
On the other hand, fired employees are less likely to receive unemployment because most states only grant benefits to those who lose their jobs through no fault of their own.
If you were fired due to misconduct, policy violations, or poor performance, the employer may contest your unemployment claim, arguing that your dismissal was justified.
However, you still have options for what to do after being fired:
- File for unemployment anyway: Explain your side of the situation clearly and truthfully; you might still qualify if the reason was minor performance issues. If denied, you have the right to appeal the decision.
- Negotiate your exit: Ask your employer if they can classify your departure as a layoff or resignation instead of termination.
- Consider freelance or gig work: Start a freelance, contract, or part-time job to maintain some income.
- Check your state’s laws: Some states have different thresholds for what counts as “misconduct” that disqualifies you from benefits. Research your state’s guidelines to see if you still have a case.
Immediate Steps to Take After Losing Your Job
Following these simple steps can help you regain control after losing your job:
STEP 1
Don’t panic — take a breath.
It’s expected that you will be emotional after losing your job. Take a short break to clear your thoughts and process your feelings, whether shock, frustration, or anxiety.
STEP 2
Request a written confirmation.
Asking for a termination letter or a written explanation will help you understand the reasons for your termination and determine the next steps.
STEP 3
Review severance pay and unemployment options.
Check if you’re eligible for severance pay and when it will be paid. Read your state’s unemployment eligibility prerequisites, and if you qualify, start collecting all the required documentation.
STEP 4
Examine your budget and financial situation.
Take stock of your savings and cut unnecessary expenses. If struggling, check for rent or mortgage assistance, food aid, or other support programs.
STEP 5
Update your resume and online presence.
Once you feel more centered, consider adding “open to work” to your LinkedIn profile. Then, review and update your resume sections to showcase your latest work.
Here are some resume tips after job loss you can apply with our easy-to-use online tools:
- Resume summary: Discuss your most impressive accomplishments and credentials while reinstating your career goals. Try using our AI Resume Summary Generator to help brainstorm ideas.
- Skills: Review and edit your skills list to reflect your current qualifications. Our AI Resume Skills Generator can support you with a tailored and customizable start list.
- Work experience: Update your job dates and latest achievements to highlight the strong employee you are. Upload your resume to our Resume Builder and answer a few prompts to get job-specific content suggestions you can add to this section of your resume.
How to Recover from Job Loss and Get Back on Track
So you’re ready to start your job hunt. Here are a few tips to successfully get back on the job market after unemployment:
Handling a job gap in your resume
You will likely have an employment gap in your resume. Here’s what you can do to address it:
- In your resume summary, briefly mention how you’ve focused on your professional growth during this time.
- List skills you gained during your employment gap, whether through online courses, professional training, or even traveling.
- Treat this time like a job and include it in your work history. For example, if you did volunteer work during your gap time, you can add it in the same format.
- If you decide to return to school or acquire a specialized certification, include it in your educational background.
FAQ
What not to do after losing a job?
Losing a job can be challenging, but how you respond can impact your next opportunity. Here are common mistakes to avoid after job loss:
- Don’t panic or make rash decisions.
- Don’t badmouth your former employer.
- Don’t stop networking.
- Don’t rely solely on online applications.
- Don’t neglect your finances.
- Don’t let job search burnout take over.
- Don’t lie about your job loss.
How can I find freelance, contract, or temporary work while job hunting?
Quick tips to find freelance, contract, or temporary work while job hunting:
- Explore online platforms like FlexJobs for remote gigs, TaskRabbit, and Instacart for local side jobs.
- Industry-specific sites like Toptal (tech), Contently (writing), and Dribbble (design) can help find specialized work.
- Register with temp agencies like Randstad and Robert Half for short-term roles.
- To monetize skills, consider consulting, tutoring, or selling digital products.
See our report on corporate involvement in government for insights related to recent federal workforce restructuring contributing to job loss and uncertainty.
Should I go back to school or get a certification after a job loss?
Deciding whether to go back to school or get a certification after a job loss depends on your career goals, budget, and industry needs.
A degree makes sense if you’re switching fields or need higher education for advancement, but it requires significant time and money.
A certification is a faster, more affordable way to upskill, especially in IT, marketing, and project management, where employers prioritize skills over degrees.
Before deciding, consider cost, time commitment, and job market demand to ensure your investment creates better job opportunities.
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Natalia is a Certified Professional Resume Writer (CPRW) and member of the Professional Association of Resume Writers & Career Coaches. She is committed to helping job seekers navigate the job market and succeed in their careers.
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