Loss of employment is a sad reality especially now that the world is hit by a pandemic. In the country, a lot of businesses had to pivot their way around dangerous waters. Not only were they forced to change their operations in order to adapt, but it also meant cutting down expenses to its core.
Unfortunately, what this meant to millions of Americans is being let go from work. Some were given reduced hours at work while others are on a furlough. Other businesses were able to operate with their workforce logging in work at home. For the rest whose jobs cannot be taken home or the company is unable to adjust, they are let go.
Loss of employment was a big problem that nearly half of the population is still out of a job according to CNBC. What started out as a medical issue grew and affected the economy. And this is not only a problem in the country but around the world as well. A lot of other countries are trying to get a grasp on the virus.
The usual cause of Loss of Employment
However, there are a number of other reasons why people would lose their jobs. Here are some of them you need to watch out for.
Forbes shared that there were about 1.3 million Americans filing for first-time unemployment benefits. This is because at this time, the health crisis is a big factor why a lot of workers are out of a job at the moment. As mentioned earlier, a lot of businesses had to let go of a lot of people to cut down on costs.
A lot of this has to do with the stay-at-home orders brought down by all the states. People were asked to stay indoors to curb the spread of the virus. As a result, physical stores saw a rapid decline in customers. As foot traffic went down, shops did not have customers coming in. This resulted in closing businesses or scaled down operations.
The recent health crisis is a big factor why the loss of employment in the country is high. But the reality is that a lot of businesses come and go. And the reason for closure varies from the owners selling the business to simply a decision to stop operations. Whatever it is, this is something that is totally out of your control.
Some companies are unable to adapt to a fast moving industry. Technology also has a hand in this forcing a fast-paced competition landscape. Take phone companies for example where old and reliable brands were forced out because they were not able to innovate. As a result, they were overrun by the competition and forced to close down.
Even before the health crisis, retrenchment was happening in businesses across several industries. The reasons were diverse as well from trying to streamline operations to shifting to a different business focus. Most of these though boiled down to trying to cut down on costs. The smaller the operating cost, the higher the businesses’ profit margin can be.
Health Problems can lead to loss of employment
Your health is one of the best financial investments you can make and this can affect your work as well. There will be times when you have to stop working due to health reasons. Getting into an accident is different because no one can prepare for that. But you can make sure that you keep your body as healthy as possible so you can be productive for a long time.
When you decide to live a healthy lifestyle, there are two important things to consider. One is eating right and the other, a moderate amount of exercise. Remember that these two go hand in hand. You need to fuel your body the right way and you need to keep your body moving as well. You can also do home exercises a few minutes a day. These two will help you improve your overall health.
Unplanned Early Retirement
There are instances when you need to retire earlier than you have planned. SItuations in life can come up where it forces you to retire early. For one, accidents could force you to retire earlier than anticipated. Family situations can also change where your undivided attention is required. It is also possible that the company or industry you are in is in decline and you were not able to develop other skills. Once these things happen, you stop going to work.
How to prepare for Loss of Employment
Now that you have an idea about some of the most common reasons why employment can stop, here are a few things to help you prepare for them.
Let your Family Know
Once your employment is in peril, you need to let your family know. For one, they will the most affected by this change. Especially if you have children at home. There are instances where you can make a single-income household work but this needs a lot of work. Trying to work it out early can give your family the chance to make the adjustments.
Tighten your Budget can help with loss of employment
Once loss of employment is inevitable, you need to begin making some serious adjustments with your household budget. You might need to cut down your costs to the core minimum. This means having a good handle on what is important and necessary at home. Start identifying what your needs are to separate them from your wants.
There are some non-negotiable items in your budget. This includes food expenses and house payments and even utilities. It can also include medicines, and other expenses to help you continue bringing in some form of income into your budget.
Start a small Business or Side Hustle
It might surprise you to know that there are successful businesses now that started their operations during a bad economy. GM, HP, and even Burger King all started operations during challenging times and they are now very successful. This is not to say that they had a smooth rise to the top. But what this shows you is that it is possible.
That is why a loss of employment could be the one that finally pushes you to go ahead with your business idea. Of course, you need to pattern it to the present day needs of your target market. The health crisis has changed a lot of economic factors, even the buying patterns of people. Make sure you put these things in your radar when setting up a business during this time.
Acquire a New Skill
Do you know that you can earn money doing the things you love? This is often referred to as an income positive hobby. As the name suggests, this is where you make use of your hobby to bring an additional income stream at home. The great thing about this is you get the chance to earn money while doing something you already love to do.
Do you love to create digital art? You can offer your services to businesses near your area. This is actually a good idea since a lot of businesses are cutting down on people. But they are looking for freelancers to help sustain operations. If you love to bake or cook delicious meals, see how you can offer that product to family and friends. You can also learn how to create an online store and start selling products.
Update your Resume
There are companies out there who are still hiring. That being said, you need to constantly update your resume. If you learned a new skill recently, make sure that is reflected in your credentials. This will help prospective employers understand what you can bring to the company. That being said, make sure you regularly upgrade your core skills and learn new ones you can use in your industry.
Loss of employment is tough especially when there is a health crisis on-going but you can overcome it. There will be sacrifices you have to make and you need to cut down on some expenses. But this is not an impossible task.