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Extend Your Severance Runway

Tips to Stretch Your Payout

June 13, 2024

👋 Welcome, Jobseekers

In this week’s newsletter:

  • 💰 Career CoPilot: Extend Your Severance Runway

  • 📉 Layoff Report: ByteDance, Paytm, Copia, Revel

  • 📊 Trends & Data: Rise in unemployment rate not as scary as it seems?

  • 🔧 Jobseeker Tools: CoPilot Money, Invisibility, LalaPass, FlowCV

🧑‍✈️ Career CoPilot

💰 Extend Your Severance Runway

Every week, we hear that “the labor market is still gliding toward a soft landing” or that “employers added hundreds of thousands of jobs last month,” but when you’re in the job-seeking trenches, it’s a much different story. “8 rounds of interviews, then ghosted”; “laid off 3 weeks after hired”; “been interviewing for a year and half”.

April 2024’s JOLTS Report showed that job openings fell to their lowest level since February 2021 sitting at 1.2 jobs available per unemployed worker. Unemployment rates have risen, although the data does show that a vast majority of those are 16-24 year olds, while the unemployment rate for 25-50 has held steady at 3.3% (we’ll take our wins where we can get them).

All this is to say that if we are fortunate enough to have received a severance package, we need to be prepared to make it last. Most employers offer employees one to two weeks of pay for every year they worked for their company, but if our expenditures and lifestyle don’t adjust, that runway will disappear before you know it.

Tips to Expand Your Severance Runway

  1. Apply for Unemployment Benefits:

    • Action Step: This one goes without saying, but immediately apply for unemployment benefits and give yourself some cushion to make the right next move. Check your state’s eligibility criteria and ensure you submit all required documentation.

    • Benefit: Provides a temporary source of income, helping to extend your severance period.

  2. Employ Yourself:

    • Action Step: Leverage your existing clientele, professional network, and expertise to offer consulting services. In some cases, you may be able to lure existing clients to you as a consultant if they have a good relationship with you. Be careful with platforms like Fiverr and Upwork as the cheapest labor typically wins there.

    • Benefit: Generates additional income and keeps your skills sharp.

  3. Reduce Monthly Expenses:

    • Action Step: Create a budget and identify non-essential expenses to cut. Negotiate bills such as cable, internet, and phone services for lower rates. Check out platforms like CoPilot Money to get a continuous stream of information on your financial situation.

    • Benefit: Lowers your monthly outgoings, making your severance last longer.

  4. Take Advantage of Severance Benefits:

    • Action Step: Review your severance package for any included benefits like job placement assistance, healthcare, or financial planning services.

    • Benefit: Utilizes company-provided resources to reduce personal expenditures and assist in finding new employment.

  5. Temporary or Part-Time Work:

    • Action Step: Apply for temporary or part-time jobs in your field or related industries. We did a whole newsletter on how part-time/contract can actually be a better course of action than seeking a highly-competitive full-time job right now.

    • Benefit: Provides steady income while you search for a full-time position.

  6. Health Insurance Alternatives:

    • Action Step: Explore options like COBRA, Affordable Care Act (ACA) marketplaces, or short-term health insurance plans.

    • Benefit: Ensures you remain covered while potentially reducing your health insurance costs.

  7. BONUS: Pivot to Greener Pastures

    • Action Step: Do a complete 180º (or 90º) and look for something outside of tech. You could become a Forest Ranger, get into Construction, Real Estate, Hospitality, etc.

    • Benefit: You get your sanity back.

These are just a few ways that you can extend the amount of time that you have before you need another job. The key here is to remove the barrier from thinking that a full-time job is the only option we have to live.

📉 Layoff Report

📊 Trends & Data

Rise in unemployment rate not as scary as it seems?

The May 2024 Jobs Day report shows the US labor market is still strong despite a slight rise in the unemployment rate, primarily affecting young workers 16 to 24. Unemployment rates for “Prime age” workers (25 to 54) remained steady.

Employers added 272,000 jobs, with significant gains in private education, health services, government, and leisure and hospitality. While job openings are declining, wage growth remains steady, supporting consumer spending but posing inflation risks.

Key Takeaways:

  • Job Gains: 272,000 new jobs, mainly in education, health services, and hospitality. Full vs part-time not transparent.

  • Unemployment Rate: Slight increase, mainly among workers aged 16-24.

  • Wage Growth: Steady, supporting consumer spending.

🔧 Jobseeker Tools

Navigate your finances with confidence. Track spending, budgets, investments, net worth.

Other Jobseeker Tools:

  • Invisibility - One copilot for all AI models on Mac that is context-aware of whatever is on your screen

  • LalaPass - Share your LinkedIn profile faster than you can Apple Pay

  • FlowCV - Unleash your Potential with their All-in-One Career Platform

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