Laid off in your 40s? Jobless in your 30s? Some Practical Advice on your Next Moves

The New Normal of Job Insecurity and Joblessness

In recent months, we have been reading and hearing a lot about how Middle Level Managers and Senior Managers in the IT (Information Technology) sector are being laid off.

Further, we are also seeing reports about how even those in supposedly high positions in the Industry have been asked to leave since many of their employers feel that these people are too old to be reskilled and retrained to face the coming wave of automation and AI or Artificial Intelligence.

Indeed, with so much uncertainty and chaos in many sectors, instances of people in their 40s and even 30s being laid off after a decade or more of employment has become the norm rather than the exception.

While many experts opine that this is the “New Normal” wherein you have to be prepared for any eventuality even in the prime of your career, the reality is that unless “it strikes” one wherein one is laid off or asked to take time off without pay, one can never be really prepared.

Thus, the need for all those in their 30s and 40s is to constantly be alert to the lurking danger of joblessness and job insecurity.

Indeed, while in some ways, those with a decade or more of experience are better off than the fresh graduates or those entering the profession just now as the former have “cushions” in the form of savings and some skills, it is always better to be “ahead of the curve” when it comes to planning for the future.

Having a Cushion and Planning Ahead

Talking about cushions, a decade or more of employment would certainly result in savings (substantial or even comfortable) as well as some form of fixed assets in the form of houses and other immovable investments.

In addition, those in their 40s and late 30s often have other assets to “fall back on” in case of exigencies. Having said that, the flip side for these professionals is that they have school or college-going kids, EMIs (Equated Monthly Installments) for their houses and other commitments, as well as dependents in the form of elderly family members.

Thus, these professionals have to contend with the reality that while they do not have to “scrounge for money”; they also have to contend with family and personal commitments that younger professionals do not have.

Considering Alternatives and Mapping Options

So, what can those in their 40s and late 30s do in case they are laid off are about to be laid off? To start with, as mentioned earlier, they should remain alerted to the subtle shifts and changes in trends both in their firms as well as in the broader industry.

Thus, even if they sense that their jobs might be at risk, they must immediately start scouting for other jobs or planning for the inevitable eventuality.

These means that while they must send out their resumes or reactivate their contacts for networking that can lead to potential job offers, they must also draw up a strategy to negotiate with their employers about the terms of severance where they must be prepared to not settle for peanuts and instead, bargain for a handsome severance package.

Planning for the Jobless Future

Next, once they are laid off, they must immediately draw up a plan for the next six months, one year as well as for their immediate future.

This would entail preparing a balance sheet and a statement of cash flows wherein they assess their assets and liabilities (both shorter and longer-term ones) as well as map out the incoming and the outgoing flows of money.

This would ensure that they do not face the threat of insolvency either now or in the future. Moreover, they must also prepare a contingency plan wherein it would be better to shed as many liabilities as possible, as well as defer or delay any major liabilities that might arise in the medium to longer-term.

Freelancing in the New Era of Work

Third, they must consider their next moves and plan intelligently wherein they must approach potential employers as well as prepare themselves for freelancing and consulting assignments so that they have something “to hold on” until they “find their feet”.

This would mean that they need to start prospecting and cold calling wherein they approach as many firms as possible for shorter duration assignments as well as longer duration employment. Indeed, when the pervasive trend at the moment is flexible employment as well as persistent job insecurity, it would be better if they dig themselves in for the “long-haul”.

It is clear that the era of stable jobs and permanent employment is over and hence, all professionals and especially those in their 40s must be alert to this “shift” and prepare accordingly.

To do this, they would be better served if they start immediately for the kind of employment that is not like anything they have known. And, for those in their 30s and 20s, it would better if they minimize longer term commitments and liabilities and instead, focus on building savings that would serve them into their middle age.

Better to be Safe than Sorry

Lastly, being laid off in your 40s after you have given the best or more than best to your firm is certainly a life-altering experience that can easily leave you disheartened and disillusioned.

Thus, the important thing to note that is that under capitalism, anyone is dispensable and hence, once you accept this fact, coming to terms with joblessness would follow.

To conclude, being laid off in your 40s is akin to ending a long and committed relationship and thus, it is better to be safe than sorry once you recognize which way the wind is blowing.