For millions of Americans, inflation is causing a cost of living crisis, and as numerous businesses fold, many people are fearing for their jobs. If you have been laid off, or your employer has indicated that it’s on the cards, here’s what you need to know.
This guide sets out to answer all the questions you might have about losing your job. From knowing what you’re entitled to and your legal rights to sorting your finances and searching for a new job.
The impact of the Covid-19 pandemic
Millions of Americans lost their jobs during the pandemic as businesses closed temporarily or permanently.
Between February 2020, and October 2021, there were 4.2 million fewer Americans in employment. Those in lower-income roles were the most impacted. 59% of the jobs lost from February 2020 to October 2021 were in the lowest income bracket.
The US lost substantially more workers than the EU, in part down to the EU implementing numerous job retention schemes whilst the US focused efforts on economic stimulation checks. About 9.6 million U.S. workers (ages 16 to 64) lost their jobs in the first three quarters of 2020 (compared to those same quarters in 2019). In the EU, only about 2.6 million workers lost their jobs, despite the EU having a population of about 100 million more people.
In general, job losses and higher rates of unemployment impact persons of color, disabled people, and women more. You can find out more about these inequalities here.
Should we be worried about major layoffs at Twitter, Meta, and Disney?
Major players have been announcing layoffs for a number of months. Meta announced in November that it will lay off 13% of its workforce (11,000 employees), Twitter plans to cut its workforce in half, and Disney has implemented a hiring freeze.
Even if you aren’t an employee at one of the firms that have announced that job losses are looming, it’s a scary time to be an employee, especially if your employer has tended to follow trends set by large multinationals.
Middle managers and white-collar workers seem to be most at risk with a number of companies, including Walmart and Ford, announcing cuts to their head office staff, rather than to their employees in factories or stores.
Although layoff rates remain low, economists and recruiters are predicting a “middle-management recession”.
Meanwhile, blue-collar workers, like construction workers, who in previous economic downturns have been the first roles to be cut, are less likely to be laid off as there are still substantial talent shortages.
I’ve just been laid off, what do I need to know?
In the US there are very few laws to protect the employee. Virtually all employment situations are “at-will” which means that an employer can terminate your contract at any time for any reason (or for no reason at all!)
This isn’t very reassuring, we know, but there are certain ways to dispute layoffs, mainly if discrimination has occurred.
If you believe discrimination has occurred you would have to show that more people have been laid off who are part of one of the below groups than those who are not.
Age: If you’re over the age of 40 and believe that your employer is severing your contract due to your age, they could be in breach of the Age Discrimination in Employment Act of 1967. Additionally, under the Older Workers Benefit Protection Act workers over 40 are entitled to severance pay and have 21 days to consider a severance offer.
Race, gender, religion, sex, pregnancy, and ethnicity: If you think you’ve been discriminated against for any of these reasons, Title VII of the Civil Rights Act of 1964 protects your rights to fair employment and equal opportunities in the workplace.
Disability and health: If you believe that you’re being fired because you’re disabled, the Americans with Disability Act (ADA) of 1990 prohibits discrimination.
There are a few other reasons that a layoff is unlawful. These are:
If a layoff is done in retaliation. For example, if an employee was whistleblowing on an employer and reported illegal or unethical behavior and then had their contract terminated, your employer would be breaking federal whistleblower laws. Find out more here.
If a layoff is due to you caring for a family member who is ill. The Family Medical Leave Act (FMLA) entitles eligible employees to 12 weeks off work unpaid (or 26 if you’re caring for a service member) to care for a family member. During this time their job is protected and their health insurance coverage should continue.
If your employer has over 100 employees. Employers with 100 or more full-time employees (not counting workers who have spent fewer than 6 months on the job) have to provide a 60-day notice period to employees in the following circumstances: worksite closing affecting 50 or more employees, or a mass layoff affecting at least 50 employees and 1/3 of the worksite’s total workforce or 500 or more employees at the single site of employment during any 90-day period.
However, if the business is faltering, there are unforeseen business circumstances, or a natural disaster has occurred then the company is exempt. Find out more about the Worker Adjustment and Retraining Notification Act (WARN), here.
If you believe that your employer is in breach of any of the above, your first step is to consult with your local attorney or contact the Equal Opportunity Employment Commission.
Will I get severance pay?
Not necessarily. Severance is at the discretion of your employer and based on internal company policies. If you are offered a severance package, it is not unusual to negotiate.
There is however no legal requirement for your employer to offer severance. You can find out more about severance here.
Will I serve a notice period?
Unless you are over 40 or currently working at a company with 100 or more employees a notice period is not compulsory. However, as standard, most employers provide two weeks’ notice.
If you’ve lost your job and are struggling financially
Losing your job during a cost-of-living crisis can feel incredibly overwhelming, but there is support available.
- First things first, it’s worth investigating what financial support you are eligible for. As someone who has lost their job, you should be entitled to unemployment benefits, as long as losing your role was not your fault. You can check your eligibility here.
- If there’s another reason that you aren’t currently able to work such as health or long-term illness, you may be entitled to other pots of support. You can find out more about these schemes here.
- There are also a variety of financial assistance initiatives to support the rising costs of food, housing, and bills. However, a lot of these are only available if your current circumstances are linked to Covid-19.
- Further support may be offered by your state, or even your local council or church.
- Speak to your utility companies to see if they can provide any additional financial support. Many energy companies are offering households who are experiencing financial hardship substantially reduced bills.
- Explore whether any of your regular bills are outside of their fixed-term contracts and look for new deals. You might be able to make substantial savings with things like your phone or internet bill.
Looking for a new role after losing your job?
If you’ve been in your current role for a really long time, finding a new job might feel like an alien process.
We’re here to help, and signpost you to tools, resources, and information, to help you make your job search as painless as possible.
- Check out our find a job resources page. From how to create a showstopping resume to understanding if you should be on CareerTok.
- Value your resume so that you know how much you should be asking for and what roles are available. If our ValueMyResume tool isn’t showing what you expect, spend time making sure that your resume showcases your up-to-date skills and experience.
- Use your network. Attend free networking events either online or in person for roles in your specific industry. You’ll find loads listed on the likes of Eventbrite and LinkedIn. LinkedIn can also help you to grow your online network and reconnect with past connections and colleagues. Your network could help link you up with the job that you’re looking for.
- Research your industry and get to know how many jobs are being advertised and what wages you should be looking for. Our job search tool empowers you with data. Helping you to get a handle on jobs in your industry and jobs in your location.
- Stay positive. It’s worth another reminder that it was your role that was made laid off and has nothing to do with who you are and your professional achievements. Don’t beat yourself up, take regular breaks, and remember that you’ll be in a new role before you know it.
Ready to start your job search? Start your search here today.
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Looking for some resume help? Check out ValueMyResume for tips on how to improve your resume and to find out what you’re worth in today’s jobs market.