The unemployment rate in the UK remains in a constant state of flux and was estimated at around 3.8% in July 2022.
This figure is 0.1 percentage points lower than the previous three-month period, and 0.2% below the pre-coronavirus pandemic levels set in 2019.
While the labour market on these shores has nearly fully recovered from the Covid-19 pandemic, however, the economic climate remains parlous. So, what can you do if you’re unfortunate enough to lose your job in 2022?
What are the Challenges Associated with Losing Your Job?
While the labour market in the UK appears relatively healthy, the surrounding economic and market conditions continue to worsen.
As a result, it’s thought that more than one-third of UK adults in full-time work are currently worried about losing their jobs, while those already out of work are already showcasing signs of significant mental health issues.
What’s more, 11% of the latter demographic have experienced stress about their circumstances and been unable to resolve them, creating long-term problems that require urgent attention.
In addition to the mental challenges posed by being out of work or having your job put at risk, losing your only source of income is incredibly troubling in the current climate. After all, inflation peaked above 10% in July, while economists predict that it could reach 18.6% in January as energy bills continue to rise.
Over time, a lack of employment could cause debt and money troubles to mount, both in terms of the size of your liability and the amount that you have to pay in interest to creditors.
How to Overcome These Challenges
To tackle these challenges, it’s important to address them on an individual basis. This way, you can build an effective, targeted and holistic financial plan, which can help you in both the short and longer-term.
In terms of mental health, it’s important to address both the triggers for your unease (by finding new work or supplementing your existing income), before treating your symptoms and liaising with your GP to organise suitable support.
This will require a proactive mindset, of course, which can also help you to take practical steps towards resolving your underlying financial issues.
Firstly, you need to appraise your financial circumstances and the impact of losing your job going forward. If your total debt liability has already begun to scale, you may want to consider taking out a consolidation loan as a way of making your monthly repayments manageable.
This can ease the symptoms of depression and clear your mind, affording you far greater clarity when it comes to refining your job search and preparing for interviews.
Above all else, it’s important to remain calm and measured when you lose your job, as this will help you to create a viable plan that can help you to navigate the economic and psychological challenges.