Coping With Job Loss Caused By The Economic Recession
by Nick Ferrera
With the economic recession looming ahead or already here, Americans have plenty to worry about including losing their jobs or finding a new one. In fact, experts estimate that close to 6 million American workers might find themselves unemployed within the next three years.
Whether you are afraid of losing your job or have to look for employment, here are some recommendations that can help you and your family cope with a job loss or the possibility of a lay off.
One of the first thinks you should do is plan ahead if possible. Talk to your family about the possibility of losing an income source, plan accordingly, and discuss what measures you and your family may adopt to avoid a bad financial situation.
If you have lost your job, one of the first steps to consider is applying for unemployment insurance as soon as possible, cut back on your spending, and don’t let your pride get on your way. Your family should be your first priority according to experts. “In fact, if they go to their state's website, and click on the ‘Department of Welfare’ section, they can also be screened for other benefits like food stamps, government health insurance right away online, and submit an application,” says Julie Zorgo, a professional in debt management from moms-living-debt-free.com.
Supplemental aid like welfare or food stamps helps to keep your family’s health, but it should be only part of your overall strategy in coping with unemployment. “The long-term goal should be to find a new job or to acquire additional training and skills,” says Julie. Think about picking up a part time job if you need income fast.
If you are still employed, she recommends keeping your job and technological skills current. “That way if they [employees] are laid off, their resume will be attractive, and they will be able to compete in today's job market.”
Unemployment should not catch you completely unguarded. If possible, employees and their families should save a minimum of $1,000 dollars for emergency situations. According to Julie, “if you can save more, that is great, but the minimum should be $1,000.”
These and other personal strategies should be part of your family financial plan since, according to most analysts, economic downturns occur about every ten years. It is a period of rising unemployment and declining family income. But those who can prepare for it are better able to cope with hard labor conditions.
Showing posts with label unemployment. Show all posts
Showing posts with label unemployment. Show all posts
Friday, June 18, 2010
Unemployment: Curse Or Blessing In Disguise?
Unemployment: Curse Or Blessing In Disguise?
by Betsy Martin
Just a few minutes ago I turned on my TV to watch a bit of news and sure enough, there was a mention about the unemployment rate being at over 7%, and how that spelled disaster for the economy. Now I'm not saying that this is not newsworthy, nor am I saying that it's not unfortunate (people are losing everything they own in the process), but at the same time, a little bit of perspective never hurts.
I remember reading somewhere on the Net that the current wave of frugality is, in a way, hurting the economy because people are spending way less than they used to. This, in turn, causes businesses to make less money and lay off people. This way of seeing things only looks at part of the picture. While laying people off is one of the first cost-reducing measures, business also look at their operating habits to spot where they can reduces costs and/or be more productive. Being more productive means they will be able to offer their goods and services at lower prices because they're being more competitive. And lower prices are just what their customers will be looking for.
Another overlooked aspect of competition is that which can exist within the workforce. The first image that comes to mind when the word competition is mentioned is businesses vying for the same customers, but it can also mean workers vying to get jobs or to keep them. Employees try and bring that little extra to the table to either cut costs or increase revenue, and the businesses' financial structures get more sound as a result. I even read that in one case employees are working for free in a bid to save the business.
Given the constant coverage that is bestowed upon the current unemployment rate in the country, you might think that ours is higher that that of other countries of comparable economic stature. Not so! In several of the most developed European Union countries, the unemployment rate has been at or around 8% for many years. The United States probably has come to a point where as a country it must realize that the past ultra-low unemployment rate (known as full employment) was exceptional and move on to less glamorous statistics.
All this is merely a prelude to my main point, which is the following. While the country's average unemployment rate is 7.2%, Michigan has the highest rate at a little over 10%, and Wyoming has the lowest rate, at a little over 3%. Why the difference? Michigan's source of employment is primarily manufacturing and big factories. Wyoming is mostly a state of self-employed dairy farmers. The solution to our current economic crisis will probably come through the realization that self-employment is something we should get back into our collective minds as a viable option.
The most serious financial crisis in 75 years requires us to go back to our roots. As recently as a century or two ago, most people were self-employed. We might not have to get back to that point, but everyone should have their personal business, whether or not they derive a full-time income out of it. Wyoming's unemployment performance is made possible by the fact that it's hard to lose your job when you're the boss. Look into your talents and abilities to see if there's a potential money-maker, take advantage of a global economy and the power of the Internet to launch your very own personal venture. It's probably the best time to do that.
About the Author:
by Betsy Martin
Just a few minutes ago I turned on my TV to watch a bit of news and sure enough, there was a mention about the unemployment rate being at over 7%, and how that spelled disaster for the economy. Now I'm not saying that this is not newsworthy, nor am I saying that it's not unfortunate (people are losing everything they own in the process), but at the same time, a little bit of perspective never hurts.
I remember reading somewhere on the Net that the current wave of frugality is, in a way, hurting the economy because people are spending way less than they used to. This, in turn, causes businesses to make less money and lay off people. This way of seeing things only looks at part of the picture. While laying people off is one of the first cost-reducing measures, business also look at their operating habits to spot where they can reduces costs and/or be more productive. Being more productive means they will be able to offer their goods and services at lower prices because they're being more competitive. And lower prices are just what their customers will be looking for.
Another overlooked aspect of competition is that which can exist within the workforce. The first image that comes to mind when the word competition is mentioned is businesses vying for the same customers, but it can also mean workers vying to get jobs or to keep them. Employees try and bring that little extra to the table to either cut costs or increase revenue, and the businesses' financial structures get more sound as a result. I even read that in one case employees are working for free in a bid to save the business.
Given the constant coverage that is bestowed upon the current unemployment rate in the country, you might think that ours is higher that that of other countries of comparable economic stature. Not so! In several of the most developed European Union countries, the unemployment rate has been at or around 8% for many years. The United States probably has come to a point where as a country it must realize that the past ultra-low unemployment rate (known as full employment) was exceptional and move on to less glamorous statistics.
All this is merely a prelude to my main point, which is the following. While the country's average unemployment rate is 7.2%, Michigan has the highest rate at a little over 10%, and Wyoming has the lowest rate, at a little over 3%. Why the difference? Michigan's source of employment is primarily manufacturing and big factories. Wyoming is mostly a state of self-employed dairy farmers. The solution to our current economic crisis will probably come through the realization that self-employment is something we should get back into our collective minds as a viable option.
The most serious financial crisis in 75 years requires us to go back to our roots. As recently as a century or two ago, most people were self-employed. We might not have to get back to that point, but everyone should have their personal business, whether or not they derive a full-time income out of it. Wyoming's unemployment performance is made possible by the fact that it's hard to lose your job when you're the boss. Look into your talents and abilities to see if there's a potential money-maker, take advantage of a global economy and the power of the Internet to launch your very own personal venture. It's probably the best time to do that.
About the Author:
Before embarking on your self-employment journey, make sure you read up on filing for unemployment insurance benefits insurance benefits benefits by visiting my financial tips blog.
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