When Unemployment Is A Full-Time Job

By Nancy K. Crevier

Several major companies, including Home Depot, Sprint/Nextel, and GM Corporation, announced January 26 cuts of more than 60,000 jobs. On January 27, IBM silently entered the fray, with layoffs reported in Tucson, Ariz., San Jose, Calif., Rochester, Minn., Research Triangle Park, N.C., East Fishkill, N.Y., Austin, Texas, and Burlington, Vt. The company did not released specific numbers, citing the layoffs as part of ongoing cost-cutting strategies. Jobs lost last year totaled 2.6 million nationwide and the unemployment rate reached its highest number in 16 years, 7.2 percent, in December 2008.

The numbers are beginning to add up, and as they add up, the impact falls closer to home.

According to the Connecticut Department of Labor (CTDOL), the number of unemployed in Newtown rose from 599 in June 2008 to 753 in December, ending the year at a rate of 5.1 percent unemployed from a total work force of 14,629. In November 2007, the unemployment rate in Newtown was at 3.2 percent.

The unemployment numbers reflect the number estimated to be unemployed, according to the CTDOL, and include those who have applied for benefits with the state, those who have already exhausted benefits, and those who have not filed for benefits.

The loss of a job can leave a person reeling. Feelings can include a sense of being overwhelmed, embarrassed, humiliated, angry, guilty, or sad. Questions arise: How will bills be paid? What will friends and family think? Is my career derailed for good? What comes next?

Along with concerns about making ends meet financially, the loss of a job can mean worries about the loss of health insurance benefits. The Consolidated Omnibus Reconciliation Act of 1986, known as COBRA, allows workers laid off from some companies to keep the group health plan for up to 18 months; however, costs rest solely on the shoulders of the unemployed, making COBRA insurance too costly to maintain for many when tightening the belt.

A glimmer of hope may be on the horizon, however, so far as access to health insurance on an emergency basis. The newly announced American Recovery and Reinvestment Act of 2009, Section 3001, appears to offer temporary assistance to the unexpectedly unemployed in the forms of enrollment in Medicaid, normally reserved for low-income people, and a subsidy to cover a percentage of COBRA.

If the bill works its way successfully through Congress, it could help to ease one source of stress for the jobless.

Having a plan of action, support, and determination can give the unemployed a sense of purpose and a goal, and at unemploymentspot.com, an easy to follow “to do” list offers suggestions for getting back on an even keel.

First, file an unemployment claim to bridge the paycheck gap. In Connecticut, complete the initial claim form with the Connecticut Department of Labor TeleBenefits Line at 579-6291 in Bridgeport or 797-4150 in Danbury; or visit the website at ct.gov/dol. Benefits in Connecticut are based on earnings on the first four of the last five completed calendar quarters of work prior to a claim. The CTDOL suggests filing a claim even if the employer has not yet issued a notice. Eligibility for the temporary income can be checked at the website, as well.

The second step is to deal with the normal feelings of depression and guilt. Taking the week off after dismissal from a job is not a bad idea. Sleep, visit with friends and family, or work out to relieve feelings of stress.

“Taking a few days off might help a person get his or her head together, but any more than a week I would not recommend,” said Karen Schaum. Ms Schaum, a counselor with CT Counselors in Hawleyville, is a licensed professional counselor, national certified counselor, and holds a master’s of science degree. Previous to counseling, she worked for ten years in the field of human resources, both in management and handling employee issues. A portion of her counseling is directly related to job issues now, from those who are making a job change through choice or through a choice made for them.

“I have certainly seen an increase in the number of clients I have seen in the last six months that are here because of job loss,” said Ms Schaum, “and in the last month or two, I would say that number is significant.”

Loss of a job is a life-changing event, she explained. “Because we often have gravitated toward something we like to do, or that we feel is a strength, people may take it personally when they are let go. That can rattle self esteem.”

The emotions that surround job loss mirror the stages of grief, Ms Schaum said. The stages of grief are shock, sadness, anger, rationalizing or questioning, and finally, acceptance, and may be experienced not only by the person laid off, but by a partner or other family members, as well.

Counseling can help identify those feelings and experiences, she said. Children, who may be picking up on anxiety about job loss, should be assured that they can talk to a trusted teacher or guidance counselor or other adult, said Ms Schaum.

Setting goals and setting a routine is essential to moving positively through unemployment, stressed Ms Schaum. “Write down daily, weekly, and monthly goals, and note when those tasks are completed. By keeping track of what you have done, it is a good affirmation that progress is being made. It is very validating to see what you have done, even if you haven’t found a job yet. And don’t rely on just one plan,” she added. She uses the acronym SMART to help clients set goals. “Make it Specific, Measurable, Attainable, Reasonable, and set a Time frame,” she explained.

Develop a cognitive statement and emphasize that statement to yourself to help cope, suggested Ms Schaum, such as “It is uncomfortable being unemployed and I’m looking to change this,” or “These are difficult times. I will get through them.”

Making a routine, setting goals, and networking by reaching out to friends and family, as well as using coping skills and utilizing either private counseling or counselors available through social services, can ease the pain of unemployment. Some degree of depression and anxiety are not uncommon during a time of job loss.

Friends and family can help by empathizing, and acknowledging feelings being experienced by the unemployed. “Offer support, but be realistic. Don’t minimize the situation,” she said. “This is a scary time.” If friends and family members become aware of obvious behavioral changes and a loss of coping skills, it is time to seek outside help. “If support comes from a loving, caring, concerned place, it is never wrong,” said Ms Schaum.

Trim The Household Budget

Determine where money is spent each month and how those expenses can be trimmed until a regular income is established again.

William Donaldson of The Vista Companies, with offices in Westport and Newtown, has been a financial advisor for nearly 11 years. Primarily he counsels couples going through divorce, but recently has encountered more clients who have unexpectedly become unemployed and are seeking financial advice.

“It’s a very difficult situation now,” said Mr Donaldson. “Jobs are being cut, there is a bad housing market, it is hard to get home equity loans.”

The general rule financially, said Mr Donaldson, is to have three to six months worth of the monthly budget in safe savings that can be easily accessed in times of emergency. For many people, though, that is not a reality.

“A lot of people who have lost their jobs are living off of retirement and other savings if they have them. But they have obligations that have to be met and savings can quickly be exhausted. Unless you have a means of income to tap into, it can mean home foreclosure, especially for those people who took on a mortgage with a teaser rate. In some cases, those mortgages have doubled now. You add in a loss of income, and it’s not good,” Mr Donaldson said.

The first thing he gives clients in this situation is a check list of every possible expense. “Get a budget list and find out where the money is going. Look at your check book, look at the credit card statements and cut back wherever you can,” he said. Even for those people who still have their jobs but have suffered a substantial reduction in income due to loss of bonuses and other job perks, cutting back is an essential first step to surviving financially. “There’s a whole lifestyle change here, with all kinds of ramifications,” Mr Donaldson said.

The next step is to try to find some way to generate income. “I recommend taking any job that will help plug the financial leak. That’s hard for some people because of pride, but it’s also hard advice to take because not a lot of companies and businesses are hiring right now,” he said.

It is also important to contact banks and creditors and make them aware of your situation. By contacting them before they contact you about delinquent payments, said Mr Donaldson, they may be more lenient and willing to work out something that works for both parties on a short-term basis. “Even the IRS is willing to work with people now if you have a big tax debt. I wish I had a magic bullet to offer people in these bad times, but I don’t. All you can do is make more money or spend less.”

Using Available Resources

The next step according to unemploymentspot.com is to take the time to write a resume that lists concrete examples of achievements, and write the body to a cover letter that can be customized.

The CT Works Career Centers are part of the CTDOL, and can offer assistance in creating a resume, brushing up on interview skills, finding leads, and resource information. The Career Centers can also provide access to phones, fax machines, copiers, computers, the Internet, and any other tools needed for a successful job hunt. Support referral workshops are also offered. To register, call 731-2929 in Danbury; 455-2700 in Bridgeport; or 437-3380 in Waterbury. CT Works Career Centers also assist military veterans and people with disabilities or special needs. (See related article for job assistance resources available through the C.H. Booth Library in Newtown.)

Friends, former co-workers with a positive attitude, and family can be sources for job leads. Network with as many people as possible. Isolation does not lead to job offers and increases a sense of despair. Check with the Human Resources division of the former employer. Some larger businesses provide interim counseling and assistance in job searching.

Casual dress does not convey a good first impression, so have a suit ready for any sudden interview opportunities that might arise.

Spend at least three hours preparing for each interview, including coming up with answers to questions that might be asked, and becoming familiar with the company and industry. Prepare questions regarding the skills needed for a particular job and what a work day might look like.

Make job hunting a full time job. Work at it from 9 am to 5 pm each day, and then enjoy the time off after 5 pm. Sticking to a regular routine can help alleviate some of the stress of being unemployed, Ms Schaum agreed. “Move quickly. Don’t let that severance package run out. Get up at the same time you always did, shower, shave, get dressed nicely, put on lipstick, blow dry your hair — whatever you did before you were laid off — and put your plans into action,” she said.

If possible, set aside a place that can be the “office” within the home and look at job seeking as a job when unemployed. “It is unrealistic to think you will spend all of 9 am to 5 pm job hunting, but do set aside a certain time every day for doing so. Then fit in things you haven’t had time to do, such as doctor appointments and dental appointments if you still have benefits, or deep-breathing exercises, or working out,” Ms Schaum recommended.

The unexpected time off can be a chance to build up skills or learn a new one, as well.

“Remember that job loss is one of the top ten life events that causes anxiety. It is a huge life crisis and it is a choice whether you react or decide to respond,” she said.

 (Associated Press reporting contributed this story. )