Laid Off? Now What Do You Do?

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Laid Off? Now What Do You Do?

By Stephen Bucaro

First of all, don't feel alone. The U.S. has lost 2.5
million net jobs since March 2001. The average jobless
stint is now five months, and many people are leaving the
unemployment statistic not because they found a job, but
because they feel the situation is hopeless and have
dropped out of the work force.

Where did the jobs go? Did they go to Mexico where the
average hourly rate is $2.17, compared to $15.45 in the
U.S.? Mexico is losing jobs to countries like Vietnam
where the average hourly rate is 37 cents per hour, or
Pakistan 34 cents, or China 24 cents. While the U.S.
economy has been stagnant for the past three years,
China's economy has experienced a 9% annual growth rate.
The U.S. now has a $20 billion trade deficit with China.

China alone, with a population of 1.3 billion, compared to
250 million for the U.S., can provide more low cost labor
than this planet can ever absorb. At the same time, as
some jobs are being exported other jobs are being
automated out of existence. Remember when an attendant was
required to pump gas into your car? Remember when a human
teller was required to make a bank deposit? Those
attendant and teller jobs have been long gone.

Now we're seeing self-checkout machines at discount stores,
grocery stores, and even at the library. Say goodbye to
millions of checkout clerk jobs. The buzz word for
American business today is "productivity" - to produce the
same amount or more with fewer workers. Many businesses
have increased productivity by more than a third in the
last four years. This is only the first wave of
productivity increase. Millions more jobs will be lost as
computers and automation are put to the task of
eliminating jobs. It's the American way.

As an individual who has been laid off, what should you
do? As stated previously, the average time required to
find a new job is now five months. If you are a worker
from an industry whose jobs are being exported or
automated out of existence, your reentry into the work
force could take much longer. You need to develop a plan
for your financial survival for an extended period of time.

If your sources of income are less than your expenses, you
need to adjust your standard of living. People accustomed
to making purchases without a thought sometimes find it
difficult to adjust their spending habits. You may be
required to tap into savings or sell assets to remain
financially viable. You may need to trade your car for an
older model in order to get rid of the payments. You may
need to sell your house to raise cash and rent an
apartment until the economy improves.

You need to take care of yourself physically and mentally.
Stick to an exercise program. Get involved in outdoor
sports. You need to be looking sharp for job interviews.
Keep up with current events, especially business news. You
need to know what geographic areas and economic sectors
are poised to provide opportunity.

Don't spend your days laying on the sofa in front of the
TV snacking on junk food. Whether you get a pay check or
not, you need to stay productively engaged in the economy.
Even if the chance of actually getting a job in today's
economy is slim, you need to stay out there, making
contacts, ready to seize opportunities.

Now is the time to get more education or training. You
don't have to train for a specific career. Any general
business or technology training will give you an advantage.
Even seemingly non-related training, like art classes,
will get you off the sofa and out making contacts that
might result in a job.

If you don't have the funds for education or training,
become a volunteer. Volunteering will get you off the sofa
and out making contacts that might result in a job. It's
not unusual for someone who starts out cleaning cages at
the dog pound to end up keeping the books or managing the
dog pound, and get experience that results in a high
paying job at a corporation. The secret is being reliable
and willing to take on responsibility.

As contradictory as it sounds, the worst part of a
recession is the best time to start a business. During a
recession, money to start a business is cheap and
available. Low cost surplus and new business equipment is
available. Skilled employees are plentiful and wages are
reasonable. As the economy begins to pick up, established
businesses are slow to gear back up to meet the demand.
That leaves clients looking for new sources. If you are
interested in starting your own business, contact the
Small Business Administration for guidance.

The U.S. has lost 2.5 million net jobs since March 2001.
If you are one of the individuals who has been laid off,
you still need to stay productively engaged in the economy.
While looking for a job, you can get more education or
training, become a volunteer, or start your own business.
Most importantly, don't spend your days laying on the sofa
in front of the TV snacking on junk food. Take care of
yourself.
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