Christmas layoffs feel horrible, which is why I wanted to identify six reasons things will not be as bad as you think.
After grief, the step following a layoff is seeking unemployment benefits.
If this is your first time approaching this problem, please consider these six points as you begin your search for employment.
Christmas Layoffs: Best Time Reason #1
If a job must end, being laid off is the best involuntary reason for work to end.
Of course, when a job transition is blurred between a layoff, quit, or termination, this is generally where people seeking unemployment benefits make errors in their application process.
That aside, when a worker with certainty experiences a Christmas layoff, generally speaking, that person has far more advantages from an unemployment perspective versus any other type of job loss.
Part-Time: Reason #2
The second reason being laid off during the holiday season is the best time for a layoff is given the opportunities for part-time work.
Many people scoff at this. After all, they want a full-time job. However, the idea of adding part-time work to one’s job search process is intended to buying time. More on this in a second.
But first, if you are an upper level manager or executive, perhaps you are now turned off by my reference to part-time employment. Part time jobs do not downgrade careers. And, nobody needs to know. That said, upper level employees encounter a different set of issues, which I discuss in other posts.
Back to buying time. What I mean is the process of finding part-time work with the intent of delaying the payment of benefits under Statute 268.085.
Why would a person want to do this? Here are three reasons:
- To get out of the house,
- Building hope that benefits will not end after 6 months, and
- Giving oneself a bigger window to find the ideal full-time opportunity.
Again, part-time work opportunities are abundant around the holidays versus the summer months.
Over the last few years, the summer months generally see a higher unemployment rate than our winter months. My source of truth stems from the seasonally adjusted unemployment statistics published by MN DEED.
If this doesn’t convince you that the best layoff is a Christmas Layoff, then consider my third reason.
Summer Job Seekers: Reason #3
Working with unemployed employees at all levels, it is my experience that summer layoffs are worse. I believe this is the case because there are fewer opportunities for short-term or temporary jobs.
Look, workers and employees who are able and willing, are going to find work. The best job might not come along right away, but eventually, it must.
Yes, the job search process at 45, 55, and 65 feels icky. For that matter, the job search process at 25 and 35 feels icky too. But, the job search process is not impossible. Just different than the last time you were looking for a job.
Even better, laid-off workers in Minnesota can collect unemployment benefits for 26 straight weeks. When things get bad, our Government has the option to extend unemployment benefits even future. This isn’t guaranteed, but it helps.
Because laid-off workers are required to wait one week before collecting, this puts most people in the month of June before benefits will end. If my intuition is right, you are going to find a job long before June.
For those that disagree, might I suggest more positive thoughts. If this doesn’t convince you, then consider my fourth reason.
Company Budgets: Reason #4
Most businesses and companies start over with their budget on January 1. This generally means companies are firm on growth projections and needs. In other words, new job postings are more likely to get posed in the new year. Also, this means an unemployed worker is less likely to hear “we have a hiring freeze“.
For the types of businesses that ramp up in the spring or summer, you are ahead of that curve too!
If this doesn’t convince you, then consider my fifth reason.
Taxes Start Over: Reason #5
Collecting unemployment in January is better than collecting unemployment in October or November.
On their own behalf, some of my past Clients take it upon themselves to set aside their own tax deductions. When an applicant in Minnesota fills out their application for benefits, they will be asked whether they want taxes taken from their benefit.
Of course, this is a personal choice and requires feedback from a tax professional.
However, it is reassuring that the tax window for benefits after a Christmas layoff is pushed out a little further. Combine this with the hope of landing a new job in the months to come, I view this as a positive.
If this doesn’t convince you, then consider my sixth reason.
Minnesota Unemployment: Reason #6
On a week by week basis, Minnesota pays the second most in unemployment benefits. In other words, I would rather be unemployed in Minnesota than 48 other States.
If you are curious, Massachusetts pays the most. If you have an hour, here is a cool website with additional UI data points.
Final Christmas Layoff Thoughts
I believe in Christmas Miracles. You are one phone call from making things turn around.Whether your miracle comes this week, in four months, or thereafter, today is the goal.
Nonetheless, I wish you and your family the very best during this holiday season.