2/18/2018

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Losing Your Job

Losing a job due to a lay off is always a very serious concern, especially during times of a recession or a slowdown in the general economy. It doesn't matter how long you've worked for a company, there is always the possibility of being laid off.

Management may see a real need to downsize, or may find it cheaper to produce goods overseas. Whatever the scenario, layoffs are always a real possibility. Once a company starts feeling the affects of a recession or other market pressures, management has to look for ways to solidify the bottom line of the company, to keep it competitive, and in some cases, to keep the company from going bankrupt or completely out of business

Most companies try to find other ways to keep running by cutting costs in an effort to stop financial stagnation, and use layoffs only as a last resort. But if business declines or remains slow and there is no projected growth in short or long term earnings, then layoffs may be the only recourse for the company.

Notification of a layoff may be given well in advance, but sometimes they are totally unexpected. In either case, the employee finds himself out of work and looking for another job. It may not seem real at first and then the shock and astonishment hits home.

Over time, a company invests vast amount of resources in their employees, from hiring, training, salaries, insurances, and other benefits. Keeping employees working and productive is in the company's best interest, and no company wants to cut jobs because employers know that skilled labor is a valuable asset.

Employers know and understand that once an employee is laid off, the employee may not return, especially if a higher paying job, or a job with better benefits is found at a competitor or elsewhere.

An employee with the least seniority is usually the first to get a pink slip or layoff notice, but depending on how deep the recession is, the lay offs may climb to include those with high seniority. This is why unemployment insurance is so important for all employees.

If you get laid off, it can hurt in many ways. Household expenses, car notes, life insurance premiums, credit cards, and other monthly bills may suffer the consequences. Savings may have to be used for financial survival, and then there is the emotional stress.

During periods of unemployment, many marriages go through turmoil, some ending in divorce. There is the increased likelihood of spousal abuse, child abuse, and drug and alcohol related issues. Having to cope with a layoff is never easy and finding another job may take a long time. If you do manage to find a job, you may have to take a position below your normal pay grade just to have a steady income.

With all economic and business cycles, recession may last a year or two, or it may last several years. The job market may get very weak and there may be fierce completion for any available work.

It's hard to tell someone not to get discouraged, but the truth is, a positive attitude is exactly what you will need until things get better. During times of economic worries, many people start looking at other ways to come out ahead. They open their own business, go back to school, get their degrees, retrain, and learn other skills while they are laid off or out of work.

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