by Bruno Somerset

Created on: May 08, 2007   Last Updated: September 10, 2008

With eight consecutive months of job losses in the United States, layoffs are becoming far more common that they have been in recent memory. Even people in previously "safe" industries have found themselves having to find new jobs as the economy tightens. And both the high numbers of layoffs and the sheer unfamiliarity most have with the experience is causing tremendous stress on workers as they try to adjust to changing circumstances.

After a layoff, the first goal (or hope, at least) is finding a new position at the same salary level, or higher, that you had at your previous job. It makes sense to us that since layoffs are typically not a reflection of an employee's abilities or performance there should not be a significant drop in pay at a new company. However, this may not be true for a number of reasons.

If you had no advance notice of the layoff, or only a short amount of notice, your resume may not be up to date. In fact, it may not have been updated since before you got your most recent job. It will take time to update your resume and tailor it to the current job market.

You may also be in a field that has limited opportunities, which could mean having to train for a new field entirely. There is also the fact that with more people out of work, the competition for available jobs is much greater than in past years, and this gives the employer the upper hand in salary negotiations.

These and other factors could mean that, in the short-term at least, you may be out of work for some time. Typically, if you were laid off from your job you would have received some type of severance package that included a certain number of weeks' salary and/or other benefits (like insurance coverage for a period of time). When this happens, many will see that payment as giving them time to relax and recover from the trauma of the layoff for a while before looking for a new job. This is a big mistake.

Rather than waiting, you should be looking hard for a new position while the severance money lasts, because this is your best opportunity to avoid a significant change in your normal life and financial situation. It is also the only time (unless you have a huge amount in savings) that you can be more selective in the job offers you consider. Once that money runs out, desperation tends to set in.

If your job search becomes a prolonged one, unemployment benefits will also help, but no matter what your previous position the unemployment payments you receive will be a mere fraction of what you were making. Many people take the approach that they can't take a job for less money because they will then be working full time again and won't be able to look for that job that will actually replace the income they lost as a result of the layoff. That thinking makes sense at first glance, but falls apart under close scrutiny.

This is a hard reality for most people to deal with, but taking a lower paying job is usually necessary. You can continue your job search while still earning a living, and opportunities at your new company may open that you wouldn't have had without already being on the inside. Most importantly, after an extended period of unemployment, taking a smaller paycheck will be much better for you both financially and mentally than simply sitting around waiting to get calls for interviews.

Learn more about this author, Bruno Somerset.
Click here to send this author comments or questions.