What to Do After a Job Loss: 10 Smart First Steps

Losing your job is more than a financial setback—it’s an emotional and professional shock. But job loss doesn’t have to mean defeat. It can be the start of something better.

In this guide, you’ll learn 10 smart, strategic actions to take after losing your job—plus practical tools, emotional support tips, and free resources to help you reset and relaunch your career.

1. Pause to Process Your Job Loss Emotionally

Before jumping into job boards, take a breath. It’s normal to feel shocked, angry, or even relieved. Give yourself a few days to mentally and emotionally regroup.

Try this: Journal about what you’re feeling. Name the emotions. This creates space for clarity.

BetterHelp – Online Therapy

2. Understand Your Severance, Benefits, and Rights

Carefully review your severance agreement, healthcare options, and any remaining benefits.

  • Severance pay details
  • COBRA or ACA health coverage options
  • 401(k) rollover or pension options
  • Final paycheck or vacation pay

Department of Labor: Termination Rights

3. File for Unemployment Benefits ASAP

Each U.S. state has its own unemployment website. File as soon as possible to avoid delays.

You may need: termination letter, recent pay stubs, and your Social Security number.

Apply for Unemployment Benefits

4. Update Your Resume After Job Loss

Highlight recent accomplishments and tailor your resume to today’s job market.

Focus on outcomes (e.g., “increased revenue by 20%”), leadership, and adaptability.

Resumake | Jobscan

5. Rethink Your Career Direction

Was your last job aligned with your values and goals? Use this time to evaluate and explore new directions.

Public Sector Layoffs: Private Sector HR Lessons

MyNextMove Career Tool

6. Get Your Finances in Order

Build a lean monthly budget and prioritize essentials. Consider part-time or freelance income sources.

Mint – Free Budgeting App

7. Network with Intention and Authenticity

Reach out to former colleagues, peers, and mentors. Let them know you’re open to opportunities and learning about new roles.

Be clear, confident, and respectful. People want to help—especially when you ask for advice, not just jobs.

8. Apply for Jobs Strategically

Tailor your resume and cover letter for each role. Don’t apply to everything—focus on what fits your experience and interests.

Keep a tracker to stay organized and follow up professionally.

9. Learn In-Demand Skills

Upskilling keeps you relevant and builds confidence. Focus on trending skills like digital marketing, data tools, or project management.

How to Upskill in 2025

Coursera | LinkedIn Learning | Google Career Certificates

10. Prioritize Mental and Physical Wellbeing

This is a hard season. Create a simple routine, eat well, move your body, and stay connected to others. Talk to someone if you’re struggling.

988 Suicide & Crisis Lifeline

Bonus: 3 Things NOT to Do After Job Loss

  • Don’t burn bridges with former employers or colleagues
  • Don’t accept the first offer just to “move on” unless it fits
  • Don’t isolate—connect with people you trust and who energize you

Coming Soon: Free Job Loss Recovery Checklist

We’re putting the final touches on a printable checklist to help you stay on track after a layoff. Check back soon or bookmark this post!