It may not be as frightening as you think: what you need to know after losing your job

Someone once said that the only constant in this world is change. Six months ago, nobody expected 2020 to begin this way, and now the year is almost half over. For anyone suddenly facing unemployment, redundancy is unexpected and beyond their control. Anxiety, panic, anger and similar feelings are perfectly normal responses. But with household finances thrown off balance and a more competitive job market ahead, the sooner you adjust your thinking and take action after that initial emotional upheaval, the more control you can regain.

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Assess every possible source of income

After losing a steady income, the first thing we suggest is to sit down and assess every possible source of income currently available to you.

• Check your final payslip to ensure it includes everything you are entitled to, such as holiday pay and redundancy compensation, if applicable. If anything is missing, recover it through discussions with your employer or other means.
• You may have been accustomed to supporting yourself for years, but do not be embarrassed to seek government help during difficult times. The Government’s 12-week payment for people who lose their jobs because of COVID-19 is NZ$490 for full-time workers and NZ$250 for part-time workers, twice the standard unemployment benefit. If your circumstances have not improved after 12 weeks, you can move onto the standard unemployment benefit.
• If you have children and your household income has fallen, you qualify to apply for assistance for families in hardship. It may not replace the income you have lost, but a family with two children can receive up to approximately NZ$86000 a year. The more children you have, the greater the assistance available.
• You can also apply for an accommodation supplement without receiving a welfare benefit. The amount similarly varies with the number of children. In Auckland, a sole parent with more than one child can receive nearly NZ$100,000 in assistance before they no longer have any dependent children.
• If these options still do not cover your everyday expenses, you can of course withdraw some money from your KiwiSaver account. At least this is better than taking on more debt to get by. Think carefully before deciding, however, as this irreversible step will affect your future returns. 

Minimise and safeguard your spending

Live within your means. When income falls, the second step is to review every expense, large and small, without overlooking anything.

• Contact your bank or other lenders to review loans that were necessary but are now unaffordable, and make new repayment arrangements.
• Review all regular household expenses, such as power and water bills, insurance premiums and even newspaper and magazine subscriptions. Calling to change or cancel a contract may feel awkward, but remember that these companies have experience dealing with customers whose finances have changed and understand that this is a particularly difficult time.

Start looking for new opportunities

Once you thoroughly understand your household cash flow, you can approach the search for new work with a calmer, more open mind. You need to be clear about this: Your new job need not be your ideal job, nor do you need to see it as a lifelong career. It may simply be a temporary solution until the job market improves or you find a more suitable opportunity.

Job-hunting tips:

• Understand your strengths, weaknesses and interests, and assess your abilities honestly.
• Treat job-hunting as a job and put the same effort into it. Find the courage to knock on doors; this can make a good impression.
• Research companies you would like to work for before applying, and demonstrate in interviews what value you can bring. Being bold is no disadvantage when looking for work.
• Do not overlook the networks you built through previous jobs. They may prove unexpectedly useful now. 

An unexpected push to pursue your dreams

For some people, leaving a job they enjoy or know well is hard to accept. For others, unexpected unemployment may be the push they need to overcome inertia. Yes, you no longer need to worry about what you might lose by pursuing your dreams: stability? Income? Familiar surroundings? If you have already lost these, perhaps this is an opportunity to work towards a better, more fulfilling goal.

Last week, Education Minister Chris Hipkins also announced that the Government would cover all fees for training courses in industries including manufacturing, construction, agriculture, electrical engineering, road transport, community health, counselling and nursing. You have a real opportunity to move into a new industry with better job prospects without paying training fees. Even if these occupations facing shortages are not your ideal choice, the fees-free policy introduced by the Government in 2018 gives New Zealanders a free first year of work-based training or education. If you have the time and the financial commitment is low, why not try?

Nobody can say losing a job is a good thing, but it does give those affected an opportunity to pause, reassess their lives and think about the future. Could looking at it this way make the current difficulties a little easier to accept? Perhaps one day you will look back on this difficult period and be glad you did more than dwell on self-pity.