Financial Steps to Take After Getting Laid Off

Losing a job can feel like the rug was pulled out from under you. Whether you were recently laid off or are simply worried about job security in today's economic climate, you can use this guide to understand how unemployment works and the steps to take after a job loss. 

FAQs about unemployment 

Can you get unemployment if you get laid off? 

Yes, in most cases, you can get unemployment if you get laid off. Eligibility requirements vary by state, but generally, if you lost your job through no fault of your own, you can apply for unemployment benefits.  

Contact your state’s unemployment office and file your claim online or over the phone. Once your unemployment claim is received, it could take several weeks to process, so it’s important to file promptly. 

What if you’re furloughed?  

While a layoff typically means permanent separation from employment, a furlough is temporary, unpaid leave where the employee remains officially employed. If you're furloughed, you may be eligible to apply for unemployment benefits, depending on your state's specific rules.  

Most states allow furloughed workers to claim unemployment insurance (UI) if they are not receiving a paycheck due to no fault of their own. However, it's important to note that if you receive retroactive back pay once the furlough ends, you may be required to repay any unemployment benefits received during that period. 

How does unemployment work? 

Unemployment insurance is a state-run program that provides temporary financial assistance to eligible workers who are unemployed through no fault of their own. After you file a claim, your state agency will review your application and determine your benefit amount and duration. You may be required to actively search for work and report your job search activities regularly. 

How much is unemployment? 

The amount you receive depends on your previous earnings and your state’s guidelines. Most states replace a portion of your wages. In Ohio, weekly unemployment benefits are one-half of a recipient’s average weekly wage during a base period. 

Some states also offer additional support or extensions during periods of high unemployment. You can check your state’s unemployment website for a benefits calculator to estimate your weekly payment: 

How long does unemployment last? 

Unemployment benefits typically last up to 26 weeks, but this can vary. Some states offer shorter durations, while others may extend benefits during economic downturns or through federal programs. If your benefits are nearing their end and you’re still unemployed, check for available extensions or other assistance programs. 

What to do if you get laid off 

1. Apply for unemployment 

If you’ve been laid off, the first step is to understand your rights and options. A layoff typically means your position was eliminated due to business needs—not because of performance. This distinction matters when it comes to benefits and future employment. 

If you're eligible, applying for unemployment benefits should be one of your first steps. This financial support can help cover essential expenses while you search for your next job opportunity. Be sure to gather any necessary documentation—such as your last pay stub and separation notice—and follow your state’s application process carefully to avoid delays. 

2. Take a breath 

While losing a job comes with a host of practical and financial concerns, it’s crucial to address the mental impact as well. Acknowledge how you’re feeling and confide in loved ones for support. While it’s easy – and understandable – to get caught up in the fear of the unknown, it’s important to remember that this situation is temporary. With some forethought, things can and will get better. 

3. Evaluate your savings 

What does your savings account look like? Based on your expenses and cost of living, how long do you think it will last? If you don’t think you have enough, you may want to consider hardship or personal loans to help bridge the gap. You could also pick up a temporary job, but keep in mind, this will make you ineligible for unemployment if you do so. If possible, try to avoid dipping into your retirement savings. 

4. Cut down spending 

Look for places in your budget where you can reel in spending. Consider getting rid of the non-essentials, such as gym memberships, or music streaming services. It might be difficult to part with some of these things, but your budget will thank you for it. As your situation changes, you can always revisit these services to determine if you still want to use them. 

• Tip: Use Money Management to easily identify where your money is going so you can make informed decisions about your budget. This free tool even has a recurring transactions feature so you can easily identify your subscriptions, memberships, and monthly bills.¹ 

5. Make financial obligations the priority 

If you find you need to prioritize some of your expenses, it’s best to tend to necessities, such as rent or mortgage, electric and gas bills, and food. Then focus on your other debts, such as your vehicle loans or credit card payments.  

If you’re concerned about these payments, the best lenders and financial institutions offer programs that allow eligible borrowers to skip a loan payment. This can put more money in your pocket that can be diverted to necessities during challenging times. 

6. Re-evaluate your student loan payback plan 

In these types of situations, you may be able to adjust your student loan repayment plan by temporarily suspending or lowering your payments. If you wish to suspend payments, the two most common ways are through deferment or forbearance. If you’re just looking for a lower payment, you may consider a refinance. The best thing to do is talk to your lender about your current financial situation so they can help determine the best options. 

7. Solidify your healthcare plan 

If you were laid off or terminated, healthcare is likely no longer provided by your employer; however, you may be eligible for a COBRA plan. If you decide not to go that route, you’ll need to look for alternatives for healthcare coverage. 

The best thing you can do in times like these is take proactive steps to reduce the impact. Minimize the monetary consequences of losing your job by making sure you have access to healthcare, revisiting your budget, and seeking assistance programs to reduce any long-term unemployment impact. 

GECU offers a wealth of complimentary tools, resources, and programs aimed at benefitting you in both good and bad times. Use Money Management to get your budget on track, lean on Skip-a-Pay when you need some breathing room, and turn to our interest-earning savings accounts to pad your emergency fund so you’re prepared for the unknown. Not a member yet? You can become one if you live, work, or worship in select Ohio, Kentucky, or Indiana counties.