Strategies to Stay Sane for the Functionally Unemployed

I originally started writing this article in 2015 during my second long-term unemployment stint. For some reason I didn't finish or publish it, but I think much of what I state can still be helpful even in today's strong job market. I hope you enjoy the article, and if you're currently unemployed, I hope it provides you some help and encouragement.

Originally Written in 2015 While I was Unemployed

If you're like me and millions of other Americans, you may have recently (or not so recently) lost your job. Being unemployed can be both stressful and liberating at the same time. If you're like me, one minute you're having delusions of grandeur about starting the next big company, and the next you're in panic mode picturing yourself filing for bankruptcy. I'm currently entering my fourth month of unemployment (and this is my second layoff in 5 years) and here are a few things that I learned to help keep me grounded during those times.

Before I start, I want to define what "functionally unemployed" means. Someone who is functionally unemployed has lost their job through no fault of their own. This could be a layoff from a downsizing, or a company going out of business. The opposite of that is called frictional unemployment. Someone who is frictionally unemployed has lost their job due to a firing or, like that reporter in Alaska, walks into work one day and decides to say "f--- it, I quit." If you're in the latter half of the latter category, I commend you on your bravery and wish you good luck. If you're in the former category, like me, then buckle up, buckle down, and try and enjoy the ride.

1. Be prepared

If your company downsized or closed shop, there were likely warning signs on the wall well before you got your pink slip. If you heeded those warning signs you should already have an updated resume, updated profile on a multitude of job networking sites (including Linked In), and refreshed your portfolio with examples of your work from your most recent job.

If you were truly caught off guard, don't panic. The job market is much better today than it was in crash of 2008 - 2011 (trust me I know, I was unemployed then too). Take the time to get a good resume together, and build a solid presence on the professional sites. Now is a good time to re-connect with former colleagues who may know of openings at their companies, or can provide you good references. Contact recruiters or agencies. In short, get the word out that you're looking for opportunities.

2. Be pragmatic

It can be difficult to look at things in a sensible way during a time when most things don't make much sense. For me, pretty much every professional transition I made was due to a corporate closure, buyout, or downsizing. Yet while I have lost jobs that I truly loved, I always ended up in a better place. I mean let's face it. If your company is slashing jobs and struggling to stay afloat, chances are morale is crappy, rumors are rampant, and you just can't wait to get to the weekend. Who wants to live like that forever?

Since the crash of '08, the job market has improved. Depending on where you want to land on an org chart and your minimum salary requirements, it may take a few months to land your next gig, but odds are you will land a gig.

3. Don't make rash decisions

Obviously one must re-evaluate their budget after a job loss, but if you have some cushion it's best to try and keep as much of the status quo as possible. Cancelling your phone, cable and gym subscription may do more to isolate you in a time when you need to be making connections. And if your unemployment turns out to be short lived, re-instating these services will likely cost you more than if you just kept them. I would recommend jettisoning the splurges such as eating out or clubbing in the short term, and re-evaluate the others as time goes on.

Similarly, I would resist the urge to put the house on the market and selling off grandmas heirlooms until you are actually left with no other options.

4. See if you qualify for assistance

If you lost your job due to a layoff or closure, you will likely qualify for unemployment insurance benefits in your state. The amount and duration of the UI benefit will vary by state, but for many this assistance will be enough to get them through the gap. Most states also allow you to earn some additional money when collecting, so taking part time work can help make up the difference while giving you the time you need to look for work and interview for jobs. Additionally if you live in a state that has set up an exchange, you may also qualify for assistance with your health insurance. Cobra costs for families can be upwards of $1,500 per month, so a state exchange could save you hundreds of dollars until you get your next job with benefits.

Remember, your situation is most likely temporary. Taking assistance in the interim is nothing to be ashamed of. Your goal is to get your next professional gig as quickly as possible, and you need to treat your search like a full-time job.

5. Keep your options open

While we all want a job close to home or that comes with certain benefits, during times like these you should be willing to keep your options open. Consider taking a temp to perm position. That can be a good way to see if a company is a good fit for you. If you have a unique skill, consider doing freelance or contract work. I did both during different stints of unemployment, and in addition to earning me a little money, I made connections and felt good about being productive. Also consider taking some classes or finishing up a degree if financially feasible. Keeping your skills fresh will be critical, especially if you spent years or decades in one company/industry.

6. Keeping it real

For most people, unemployment is a temporary situation. Many find themselves in new jobs in just a few weeks or months. For others it may be a bit more complicated. Things like your age, the industry you worked in, along with the changing demographics of your area will all impact when and even if you will gain employment. For some, their industries have packed up and gone overseas. This may require the ability to adapt your skills to a new industry. For those over 50, the challenge can be even greater. You're up against young talent that has skills you don't and is probably willing to work for lower pay at a company that offers free snacks and a game room. But do not sell your skills and experience short. Stay focused on the types of companies that value experience and someone willing to go for the long haul.

At the end of the day, close your eyes, take a deep breath, and know that this too shall pass.