A UPS truck on the Palace Imports warehouse in Linden, New Jersey, US, on Wednesday, Aug. 27, 2025.
Michael Nagle | Bloomberg | Getty Pictures
After a wave of massive corporations saying steep job cuts, many laid-off staff might face a financially difficult and uncertain period ahead.
Amazon mentioned on Tuesday that it will remove round 14,000 corporate positions, and the United Parcel Service, or UPS, mentioned it had diminished its operational workforce by 34,000 jobs this year. On Wednesday, General Motors laid off roughly 1,700 workers, and Paramount terminated 1,000 people. The Trump administration has additionally threatened to fireplace thousands of federal workers during the shutdown, however these efforts have been blocked up to now within the courts.
“Now’s a very difficult time to be unemployed,” mentioned Michele Evermore, senior fellow on the Nationwide Academy of Social Insurance coverage.
The Bureau of Labor Statistics didn’t publish its monthly jobs report in October due to the federal government shutdown. However analysts have been frightened about the state of the employment market for months.
1. ‘Instantly file’ for unemployment
Regardless of the government shutdown, which started on Oct.1, states nonetheless have entry to their state unemployment belief fund to pay out advantages, mentioned Andrew Stettner, the director of economic system and jobs at The Century Basis.
“Ultimately they are going to run out of federal funds to pay the employees that course of the advantages, however we have not heard of that occuring but,” Stettner mentioned.
Consequently, those that’ve misplaced their job ought to “instantly file” for unemployment insurance coverage, Evermore mentioned. Earlier than you achieve this, you will wish to collect the next info: your pay over the past 18 months, names of earlier employers throughout that interval and their addresses, your Social Safety quantity, state-issued identification and any documentation out of your final firm.
If you happen to stay in a single state and work in one other, you will wish to apply for the jobless advantages in the state where you worked, consultants say. On a DOL-sponsored web site, yow will discover the contact information for state unemployment agencies.
An indication is displayed on the U.S. Division of Labor Frances Perkins Constructing on June, 2025 in Washington, DC.
Kevin Carter | Getty Pictures
State companies ought to pay advantages inside three weeks of your utility, however delays have develop into extra widespread because the pandemic, Evermore mentioned.
“It is in all probability going to worsen as layoffs improve,” she added.
Most unemployment profit quantities differ by state. For instance, California’s most weekly profit is $450; in Florida, the cap is $275, Evermore mentioned. In most states, claimants can get advantages for 26 weeks, she added — though the advantages final for simply 12 weeks in some states, corresponding to Florida.
2. Discover new medical insurance
For a lot of staff, dropping their jobs additionally means dropping their medical insurance.
Your first step is to seek out out when your office insurance coverage formally expires, mentioned Christine Eibner, a senior economist at Rand Company. Some corporations present further months of protection underneath their plan after a layoff.
As soon as your protection lapses, it’s possible you’ll be supplied the prospect to proceed it underneath COBRA, shorthand for the Consolidated Omnibus Price range Reconciliation Act, mentioned Caitlin Donovan, a spokeswoman for the Affected person Advocate Basis.
The choice is “cost-prohibitive” for many individuals, Donovan mentioned, as a result of it requires them to pay the complete premium, together with the portion their firm was beforehand paying. However when you can afford the value tag, it’s going to trigger the least disruption to your protection. COBRA is normally obtainable for between 18 months to 36 months, according to the Division of Labor.
Now’s a very difficult time to be unemployed.
Michele Evermore
senior fellow on the Nationwide Academy of Social Insurance coverage
Different choices for getting new medical insurance embrace enrolling in a partner’s plan or in search of sponsored protection on the Inexpensive Care Act Market or by Medicaid, Eibner mentioned. Those that’ve misplaced their employer well being advantages usually have 60 days to enroll in an ACA Market plan, Eibner added. (Open enrollment on {the marketplace} for 2026 begins on Nov. 1 in most states.)
On the coronary heart of the present stalemate in Washington is whether or not or to not prolong Covid-era enhanced tax credits for ACA market enrollees. These enhanced subsidies make health insurance premiums cheaper for tens of hundreds of thousands of Individuals. With out that assist being prolonged, many individuals will see larger costs for market protection in 2026.
“Nonetheless, the tax credit aren’t going away utterly,” Eibner mentioned. “They’re simply reverting to the unique ranges put into place underneath the Inexpensive Care Act.”
Medicaid is the most cost effective health-care choice and may very well price you near nothing, consultants mentioned. Eligibility relies partially in your present earnings, which can permit many newly unemployed staff to qualify — though jobless advantages might have an effect.
3. Examine in your office retirement account
If your organization supplied a retirement account, you will must resolve what to do with that nest egg now.
You could possibly merely depart the cash within the account, although you will not have the ability to contribute to it anymore or profit from any employer match.
“This can be a nice choice, particularly if the funds within the account are sturdy and if the worker wants time to concentrate on different issues,” mentioned Dana Levit, a licensed monetary planner and the proprietor of Paragon Monetary Advisors within the Boston space.
An exception: In case you have less than $5,000 in your office retirement account, your employer might require that you just transfer the funds.
You may additionally have the ability to transfer your funds with out taxation or penalties to a different certified retirement plan, together with a 401(okay) at your subsequent firm if that is allowed, or to a person retirement account, Levit mentioned. In case your former employer is not forcing a switch, there’s no need to rush into this decision.
Whereas cashing out your 401(okay) is an alternative choice, it is not a fascinating one, Levit mentioned: “The distribution is taxable as peculiar earnings,” and “relying on the worker’s age, there may be penalties for an ‘early withdrawal.'”
Laid-off staff who’ve an excellent mortgage from their 401(okay) might face an additional headache, Levit mentioned.
“401(okay) loans are usually due in full at termination,” she mentioned. “If they don’t seem to be repaid, the excellent mortgage shall be thought-about a taxable distribution topic to peculiar earnings taxes and probably penalties.”
But it surely’s price speaking to your plan administrator and studying what your choices are, Levit added: “Some have flexibility about persevering with funds even after termination.”
4. Keep on prime of scholar loans, different debt
Individuals who’ve misplaced a job and are frightened about their scholar mortgage invoice have choices, too. You’ll be able to enroll in an income-driven repayment plan that units your month-to-month cost based mostly in your earnings and submit proof that you’ve got misplaced your job; whereas unemployment advantages will rely as earnings, you are more likely to get a low cost and a few might not owe something underneath their plan’s phrases.
The U.S. Division of Training additionally gives an Unemployment Deferment, in which you’ll be able to probably pause your funds for as much as three years after a job loss. Some student loans will nonetheless accrue curiosity through the cost pause, whereas others is not going to.
Throughout a interval of joblessness, you need to ask different lenders “for a break,” mentioned Ted Rossman, a senior trade analyst at Bankrate.
“Many lenders have hardship packages that help you skip a cost or rearrange a due date,” Rossman mentioned. “Lenders are sometimes prepared to work with you, particularly if it is one thing short-term like a authorities shutdown, job loss or pure catastrophe.”
If you happen to can handle it, making not less than the minimal funds on all your money owed will keep away from the beginning of any assortment exercise and attainable dangers to your credit score, Rossman added.
On prime of caring for your funds, it is also necessary to are likely to your psychological well being after a job loss, Evermore mentioned. That may imply sharing what you are going by with others, together with household, buddies and a therapist.
“Unemployment is among the most disturbing issues that may occur to an individual, so be conscious of the very fact that you’re not alone,” Evermore mentioned. “There are individuals who wish to enable you to by this difficult time.”
