The impact of unemployment has far-reaching consequences. Even those who have not suffered layoffs in the office may find that their jobs (and their personal lives) are negatively affected. For those who have lost their jobs, the hope of timely retirement may change drastically.
Employees work harder, but their incomes decrease. Statistics from the Department of Labor show that Americans produce more goods than in previous years, but their pay for work has decreased. When colleagues are fired, those who stay have to clean up the mess, which means longer working hours, harder work and lower wages. Although the company may show some profit during this time, it usually comes from layoffs or pay cuts for those who stay.
Fear of unemployment may make employees feel that they are at the mercy of their employers. For some companies, when the dust settles, the most diligent employee may be the only employee around. Although this may be a way to weed out workers with lower productivity, many of them may also face burnout. (To help avoid burnout, please refer to our article Ten ways to avoid corporate financial burnout.)
When there are no incentives (bonuses and salary increases), it can be difficult to find incentives. However, the fear of no income may force employees to step up and work harder than ever before.
Impact on retirement savings Personal savings accounts may be the first thing affected by unemployment. This is why it is important for those who are lucky enough to find a job during the economic boom to take advantage of automatic enrollment in their retirement plan. According to a 2017 report from Hartford, 42% of respondents said they avoided the market, and 26% of respondents adjusted their retirement plans after the 2008 recession. (Learn more about planning to achieve retirement goals Five retirement questions everyone must answer.)
What to do after being laid off When you find yourself laid off, it’s time to establish contacts. There are many online sites that can help you get back on your feet. Remember-any connection can lead to employment.
One of the main problems people face when they are fired is how to deal with health insurance. Remember, there are programs like COBRA that can continue to pass your work.
Who will not be harmed in difficult times Not everyone will be harmed by economic recession or downturn. Employment statistics indicate that there may be more women in the labor force than men. According to the US Bureau of Labor Statistics (BLS), as of 2020, women occupy 47% of jobs. Although more women enter the labor market, they still work fewer hours than men. According to government reports, men can only earn 80 cents for every dollar they earn.
During the economic downturn, not all companies lay off employees—some companies even thrive. Historically, dentists have done well in difficult times, because those who skip caring for their teeth find themselves having to catch up. A survey conducted by the San Diego AMN health care institution in 2009 showed that during the recession, many nurses returned to work to fill the economic gap caused by the loss of family members’ wages. In the survey, 58% of respondents stated that they worked longer than the previous year.
How do you know if you are eligible for unemployment insurance when applying for unemployment insurance? The first is the website of your state’s Department of Labor to answer some eligible questions. There is usually a waiting period before the benefits take effect, and even then, the total amount you receive will not equal the amount you earned while working. Therefore, please plan accordingly. (Unemployment preparation can help you gain a foothold when this day comes, please check our article Unemployment planning More. )
Conclusion When the unemployment rate remains high, people with jobs may face greater pressure and overwork than ever before. Those who lose their jobs may feel depressed and anxious. Although the economic recession is over and the unemployment rate will fluctuate, after a period of unemployment, to gain a foothold, it takes more than high hopes. Plan ahead and use the money you have wisely, and you should be back to the office soon.
For related reading, please see Is the layoff protection plan cost-effective or a gimmick?