Job loss anxiety: How to handle the stress of losing your job
Clinically reviewed by Dr. Chris Mosunic, PhD, RD, CDCES, MBA
Job loss anxiety is real. Learn how to handle the anxiety of losing your job and how to move forward with our 8 coping techniques for unemployment stress.
Losing your job can be devastating. For many people, being fired or laid off is sad, stressful, and anxiety-inducing. Not to mention, losing your job can completely wreck your self-esteem. It can also present terrifying questions like how you’re supposed to pay your bills or support your family. On top of this, job loss can impact your identity and the future you’ve planned. If you've recently found yourself out of work, these intense emotions can help you become clear on what you want for yourself and what comes next.
What is job loss anxiety?
Job loss anxiety is the feelings of worry and stress you might experience when you suddenly become unemployed, and it can affect every aspect of your life. Everyone expects the drop in income to impact their lives, but the loss of routine, community, social connections—and the part of your identity that came with your career—can also impact your life and increase anxiety.
The emotional impact of job loss: 6 symptoms
When you lose your job, you might feel a range of emotional responses that feel similar to other feelings of grief and loss.
Shock and disbelief: Initially, you may find it hard to believe you've lost your job. You might feel numb or disconnected from the world as you process the unexpected news.
Denial: Following the shock, you might hope that there's been a mistake, or that the decision might be reversed.
Frustration and anger: As the reality sets in, feelings of injustice or anger toward your former employer can surface. You may also feel self-directed frustration, where you question your own actions or decisions.
Anxiety and worry: You may begin to feel concerned about the future — how to find a new job, manage finances, or maintain your lifestyle. This anxiety can disrupt your sleep, concentration, and emotional balance.
Sadness and loss: Mourning the job and the daily routines that came with it, including social time with colleagues, may also be common.
Physical symptoms: The stress and anxiety can lead to symptoms like headaches, fatigue, stomach issues, or a general decline in health.
How to handle job loss: 8 tips for coping with unemployment anxiety and stress
Fortunately, there are solutions to job loss anxiety, so you can handle unemployment stress and feel ready to re-enter the job market.
1. Allow yourself to feel
It’s okay to feel upset, angry, or sad about losing your job. These are natural emotions, so acknowledge them as a healthy step toward recovery.
💙 Try Labeling Emotions, which is a great way to gain clarity if you’re unsure what you’re feeling,
2. Secure your finances
Immediately examine your finances. Create a budget that reflects your current income status, reduce or eliminate any unnecessary expenses, and prioritize essential spending to minimize any additional stress. Apply for unemployment benefits if you’re eligible, and explore other financial support options like severance packages or emergency funds.
💙 Cultivate feelings of positivity around money, instead of scarcity, but learning the importance of Reframing Difficult Thoughts.
3. Lean into self-care practices
Keep yourself engaged with activities that promote relaxation and wellbeing, such as meditation, yoga, or taking long walks. Maintain a healthy diet and get enough sleep, as physical health can significantly impact your mental wellbeing.
💙 Tune into Lama Rod Owens’ Radical Self-Care series for inspiration.
4. Inform your network
Communicate with family and close friends about your job loss. This can help you get the emotional support you need, and may even help you find potential new job opportunities through your wider network. Being transparent about what’s going on can help loved ones understand your needs and how they can be there for you.
💙 Lean on your support system as you learn to navigate the Waves of Change happening in your life.
5. Take a short break
Allow yourself a few days (or weeks, if you’re able to) to regroup before getting straight into job hunting. Use this time for activities that you enjoy, as these can provide a mental reset, which can help you approach your job search with a clearer, more focused mind.
💙 Practice Saying Yes to Life as a way to accept and embrace each stage of your unemployment journey.
6. Set a routine
Develop a daily schedule that balances job search activities with personal development. Allocate specific times for applying for jobs, networking, and skills development, but also include regular exercise, hobbies, or other interests. Keeping a routine can help you maintain a sense of normalcy and purpose.
💙 Discover how to Turn Choice Into Routine with help from Jay Shetty.
7. Seek professional advice
Look for advice from a career coach or counselor, especially if you're struggling to manage stress or need strategic help with your job search.
8. Update your resume and LinkedIn profile
Make sure your resume, cover letter, and LinkedIn profile are up-to-date and highlight your most recent job experiences, skills, and achievements. Tailor your resume to the specific jobs you're applying for, using relevant keywords to ensure you get noticed in applicant tracking systems.
How to move forward after job loss
Moving forward after a job loss can feel daunting, but it can also present an opportunity to reassess and redefine your career path.
1. Reassess your career goals: Reflect on your past job experiences — what did you enjoy, and what would you prefer not to repeat? This can help you identify what you truly want in your next role. Consider whether it’s time to shift directions or advance in the same path. Using this time can help you set new career objectives that align more closely with your personal values and professional dreams.
💙 Learn the importance of uncovering The ‘Why’ Behind Your Goals.
2. Update your skills: The job market is continually evolving, and skills that were once in demand can quickly become outdated. Learn new skills or update existing ones with online courses, workshops, and seminars to enhance your knowledge and make your resume more attractive to potential employers. Focus on skills that are highly valued in your industry, or explore new areas that interest you.
3. Explore alternate career paths: Sometimes, a job loss can present an opportunity to explore a different career path. Research alternative roles or industries where your skills and experiences might be a good fit. Consider roles that might benefit from your transferable skills, and think about how you could position yourself in these new arenas.
4. Consider entrepreneurship: If you have a business idea, now might be the perfect time to explore that option further. Entrepreneurship can be a rewarding path, offering you control over your work and the creative freedom to build something new and exciting.
5. Network actively: Networking can be a powerful tool in job hunting. Reach out to former colleagues, industry peers, and friends. They might be able to provide support, but also potential leads for job opportunities. Attend industry conferences, seminars, and online forums to expand your professional network.
6. Stay positive and persistent: The journey to a new job can be lengthy and filled with challenges, so maintaining your positive mindset is important throughout the process. Set realistic goals for your job search and celebrate even the small successes along the way.
💙 Follow along to Mel Mah’s Let’s Celebrate session whenever you have a small win to keep your morale up.
Job loss anxiety FAQs
How can I stay motivated during my job search after a job loss?
Staying motivated during a job search can be challenging, especially after the emotional impact of a job loss. To maintain motivation, set small, manageable goals each day.
Update a section of your resume.
Apply to a certain number of jobs each week.
Network with at least one contact a week.
Celebrate small victories to help you maintain a positive outlook.
Keep a regular schedule that mirrors a typical workday, to help you preserve a sense of normalcy and purpose.
What are the psychological effects of long-term unemployment, and how can I combat them?
Long-term unemployment can lead to increased feelings of depression, anxiety, and a decrease in self-esteem, so it’s important to combat these effects by keeping up with activities that boost your mood and self-worth.
Try volunteering, part-time jobs, or hobby projects to keep you active and provide a sense of achievement and purpose. Take regular exercise and maintain social contacts to support your mental health during this period.
How should I manage my savings during unemployment to reduce financial stress?
Managing your savings to reduce stress during unemployment involves careful budgeting and prioritization of expenses.
Review and adjust your budget to cut non-essential spending.
Prioritize expenses related to health, housing, and food.
Consult a financial advisor for personalized advice based on your financial situation.
Plan and stick to a revised budget.
What practical steps can I take to improve my employability after a job loss?
To improve your employability, focus on enhancing your skills and qualifications.
Enroll in courses or workshops that can add value to your resume, especially those that are in high demand in your field.
Network by reaching out to former colleagues, attending industry gatherings, and using social media platforms like LinkedIn to connect with potential employers.
Keep up with industry trends and news to make you a more informed and appealing candidate during interviews.
How do I address a period of unemployment in job interviews?
Addressing a period of unemployment in interviews requires honesty and a positive spin. Focus on what you've learned and accomplished during your time off. Employers appreciate candidates who are proactive and use their time constructively. Frame your unemployment as a period of growth and learning, highlighting how it’s prepared and refreshed you for your next role.
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