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Losing a job can feel like the ground has shifted beneath you. The mixed emotions can be overwhelming, whether unexpected or something you saw coming. On top of that, financial concerns can add an extra layer of stress.
But take a deep breath. While job loss is undoubtedly challenging, it's a turning point that can lead to new opportunities, growth, and even a better career fit. You are not alone, and you have options.
This guide will walk you through what to do after losing your job. Your next chapter starts now — let's take it one step at a time.
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Fired vs Laid Off: What’s the Difference?
You lost your job, but were you fired or laid off? How do you tell the difference? It comes down to the reason for job separation:
- Fired: This happens when an employer terminates an employee for performance issues, misconduct or violating company policies.
- Laid off: A layoff occurs when an employer eliminates a position for reasons unrelated to the employee's performance, such as budget cuts, company restructuring, downsizing, or economic downturns.
Knowing whether you've been fired or laid off is essential for your next steps. The conditions of your recent unemployment will determine whether you qualify for unemployment benefits, severance pay, or even the possibility of a rehire.
Can you get unemployment if you were fired or laid off?
Laid-off employees qualify for unemployment benefits because their unemployment was not their fault. Depending on company policies, they can receive severance pay or be rehired if business conditions improve.
On the other hand, fired employees are less likely to receive unemployment because most states only grant benefits to those who lose their jobs through no fault of their own.
If you were fired due to misconduct, policy violations, or poor performance, the employer may contest your unemployment claim, arguing that your dismissal was justified.
However, you still have options for what to do after being fired:
- File for unemployment anyway: Explain your side of the situation clearly and truthfully; you might still qualify if the reason was minor performance issues. If denied, you have the right to appeal the decision.
- Negotiate your exit: Ask your employer if they can classify your departure as a layoff or resignation instead of termination.
- Consider freelance or gig work: Start a freelance, contract, or part-time job to maintain some income.
- Check your state's laws: Some states have different thresholds for what counts as "misconduct" that disqualifies you from benefits. Research your state's guidelines to see if you still have a case.
Immediate Steps to Take After Losing Your Job
Following these simple steps can help you regain control after losing your job:
STEP 1
Don't panic — take a breath.
It's expected that you will be emotional after losing your job. Take a short break to clear your thoughts and process your feelings, whether shock, frustration, or anxiety.
STEP 2
Request a written confirmation.
Asking for a termination letter or a written explanation will help you understand the reasons for your termination and determine the next steps.
STEP 3
Review severance pay and unemployment options.
Check if you're eligible for severance pay and when it will be paid. Read your state's unemployment eligibility prerequisites, and if you qualify, start collecting all the required documentation.
STEP 4
Examine your budget and financial situation.
Take stock of your savings and cut unnecessary expenses. If struggling, check for rent or mortgage assistance, food aid, or other support programs.
STEP 5
Update your resume and online presence.
Once you feel more centered, consider adding "open to work" to your LinkedIn profile. Then, review and update your resume sections to showcase your latest work.
Here are some resume tips after job loss you can apply with our easy-to-use online tools:
- Resume summary: Discuss your most impressive accomplishments and credentials while reinstating your career goals. Try using our AI Resume Summary Generator to help brainstorm ideas.
- Skills: Review and edit your skills list to reflect your current qualifications. Our AI Resume Skills Generator can support you with a tailored and customizable start list.
- Work experience: Update your job dates and latest achievements to highlight the strong employee you are. Upload your resume to our Resume Builder and answer a few prompts to get job-specific content suggestions you can add to this section of your resume.
How to Recover from Job Loss and Get Back on Track
So you're ready to start your job hunt. Here are a few tips to successfully get back on the job market after unemployment:
Handling a job gap in your resume
You will likely have an employment gap in your resume. Here's what you can do to address it:
- In your resume summary, briefly mention how you've focused on your professional growth during this time.
- List skills you gained during your employment gap, whether through online courses, professional training, or even traveling.
- Treat this time like a job and include it in your work history. For example, if you did volunteer work during your gap time, you can add it in the same format.
- If you decide to return to school or acquire a specialized certification, include it in your educational background.
Our Resume Builder can help you create a resume that confidently addresses your employment gap and spotlights your professional strengths.
Framing a layoff or termination in a cover letter
Addressing a layoff or termination in a cover letter requires honesty, professionalism, and a focus on moving forward. The key is to keep it brief and positive, emphasizing what you've learned and how you're a strong candidate for the new role.
A layoff does not reflect your performance, so it's easier to explain. Here's an example:
Alternatively, if you were fired due to performance issues or a mismatch, keep your explanation concise, take responsibility if necessary, and highlight your commitment to growth through online certifications and professional training.
Look at this sample:
"My time at XYZ Tech Solutions was a valuable learning experience that helped me grow professionally and personally. While I encountered challenges in meeting my sales quotas in a highly competitive market, I took the opportunity to strengthen my skills in relationship-building, consultative selling, and CRM optimization through hands-on experience and additional training.
Since then, I have completed a Certified Sales Professional (CSP) course, which has refined my approach to prospecting, closing deals, and maintaining long-term client relationships. Additionally, I developed expertise in B2B sales, account management, and lead generation in my previous role, successfully securing five new corporate clients in my last quarter. I am eager to bring this experience and my continuous growth mindset to ABC Corporation's sales team."
Browse our cover letter templates to find one that successfully frames your recent unemployment and convinces employers you're ready for a new challenge.
Exploring job search strategies
A strategic approach to job search can help you find your next opportunity faster. Start by leveraging your professional connections:
- Let former colleagues, managers, and mentors know you're on the job market.
- Attend industry events, webinars, and meetups to expand your network and meet with potential employers.
- Stay visible in your LinkedIn network by engaging with posts, sharing insights, and commenting on industry news.
- Use alternative networking tools like Bold.pro to further establish your professional online presence and stand out to recruiters.
When actively searching for jobs, diversify your sources. There are many job boards and platforms to explore, depending on your industry and career level:
- LinkedIn Jobs: Best for networking and job postings from top employers.
- Indeed: An extensive database with jobs across industries and experience levels.
- Glassdoor: Features company reviews, salary insights, and job listings.
- Bold.pro: Helps with resume building, job applications, and diverse employers.
- ZipRecruiter: Uses AI to match candidates with job opportunities.
- FlexJobs: Ideal for remote and freelance jobs.
- Company websites: Most companies post openings on their career pages, and you can apply directly.
Explaining being fired or laid off in an interview
Stay professional, honest, and forward-looking when discussing job loss in an interview. Whether you were laid off or fired, your explanation should be concise, focus on lessons learned, and highlight your strengths.
If you were laid off, emphasize that it was a business decision, not a reflection of your performance. Highlight your contributions to the team and workplace achievements before the layoff. End by expressing enthusiasm for a new opportunity and explaining how you can add value to the company.
Here's a sample answer for a marketing manager interview:
Conversely, if you were fired, be brief and professional, and avoid blaming the employer. Take ownership and highlight what you've learned. Discuss steps you've taken to improve your skills.
Here's a sample answer for a sales representative interview:
Check out our professional guides for interview questions to prepare for and ace your following job interview.
Mental and Emotional Recovery After Job Loss
Losing a job can be emotionally draining and stressful, but focusing on self-care, resilience, and moving forward is critical. Consider this advice to stay positive and motivated:
- Create a daily routine: Structure helps to maintain motivation and prevent feelings of aimlessness.
- Set small, achievable goals: Break your job search into manageable steps to avoid feeling overwhelmed.
- Celebrate progress: Recognize small wins, like getting a callback, an interview, or a LinkedIn connection.
- Practice self-care: Exercising, eating well, and getting lots of sleep will help reduce stress, boost your mood, and energize you.
- Try mindfulness and journaling: Writing down your thoughts and meditating can help process your emotions.
- Lean on your network: Talk to friends, family, and mentors— you don't have to go through this alone.
- Join communities: Online career groups, job clubs, and industry events can help you strengthen your professional network and learn new job-search strategies.
- Consider career coaching: Career coaches or online career advice platforms can help optimize your resume while teaching confidence-building techniques.
Moving Forward With Confidence
Job loss is a setback, not a definition of your worth. Take the time to recover, reflect, and decide what to do after being laid off or fired.
Your next opportunity is out there — you need to keep going!
Remember these key steps:
- Don't panic.
- Apply for unemployment if eligible.
- Assess your financial situation.
- Update your resume and online professional networking platforms.
- Start applying.
Here are additional resume-building tools and interview prep guides:
FAQ
What not to do after losing a job?
Losing a job can be challenging, but how you respond can impact your next opportunity. Here are common mistakes to avoid after job loss:
- Don’t panic or make rash decisions.
- Don’t badmouth your former employer.
- Don’t stop networking.
- Don’t rely solely on online applications.
- Don’t neglect your finances.
- Don’t let job search burnout take over.
- Don’t lie about your job loss.
How can I find freelance, contract, or temporary work while job hunting?
Quick tips to find freelance, contract, or temporary work while job hunting:
- Explore online platforms like FlexJobs for remote gigs, TaskRabbit, and Instacart for local side jobs.
- Industry-specific sites like Toptal (tech), Contently (writing), and Dribbble (design) can help find specialized work.
- Register with temp agencies like Randstad and Robert Half for short-term roles.
- To monetize skills, consider consulting, tutoring, or selling digital products.
Should I go back to school or get a certification after a job loss?
Deciding whether to go back to school or get a certification after a job loss depends on your career goals, budget, and industry needs.
A degree makes sense if you’re switching fields or need higher education for advancement, but it requires significant time and money. A certification is a faster, more affordable way to upskill, especially in IT, marketing, and project management, where employers prioritize skills over degrees.
Before deciding, consider cost, time commitment, and job market demand to ensure your investment creates better job opportunities.
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Lost Your Job? A Complete Guide to Moving Forward After Being Fired or Laid Off
Natalia is a Content Writer based in Puerto Rico and a Certified Professional Résumé Writer. She is dedicated to leveraging her writing expertise to help job seekers reach their career goals.
Our customers have been hired at:*Foot Note
