Job loss is a 'reality' of the business cycle, says labor expert. Take these 6 key steps after a layoff
At a macro level, the job market is still hot and companies aren't yet shedding jobs in earnest. Layoffs were at a historic low in April, unemployment claims are around pre-pandemic levels and the unemployment rate is hovering near a five-decade low.
But cracks are emerging. Recruiters think Wall Street seems poised for significant cutbacks in the second half of the year, while firms such as Tesla and Coinbase have recently announced workforce reductions.
Fears have risen in recent weeks that the economy may tip into a recession. That's not a foregone conclusion, but if it happens, layoffs would almost certainly increase. The Federal Reserve is anticipating joblessness will rise in coming years as policymakers increase interest rates to combat inflation.
More from Personal Finance:Op-ed: Take these steps now to prepare for a layoffMillennials want to retire early at 59New college grads underestimate starting salaries by $10,000
«The business cycle goes up and down,» said Demetra Nightingale, a labor and employment expert at the Urban Institute. «Everybody should always be prepared for the possibility of a future layoff or job loss.
»That's part of the reality."
Here are six key financial steps to take if it happens to you.
Among the first things to do if you lose your job is take stock of financial resources at your disposal, according to financial advisors.
Those may include other streams of income such as a partner's salary, as well as emergency savings, company stock and financial accounts including a 401(k) or individual retirement account (more on this in a bit).
Your resources may also include company benefits like severance pay or cashing out unused leave like vacation and sick days. Workers should also check to
Read more on cnbc.com
