What to do if you lost your job due to the coronavirus crisis

The global economy has been falling like a stone in the abyss for several months. Unemployment has increased slightly. However, the pandemic has taken a heavy toll on jobs. The number of working hours worked in the world at the height of the first wave fell by the equivalent of 500 million jobs, and incomes by 10% according to the International Work organization (ILO) shared the latest estimates. The salvation offered to those who have lost their jobs are loans for the unemployed.

The number of people who wish to obtain loans for the unemployed differs greatly from official statistics. In the fall, six months after the start of the pandemic, an estimated 13 million people were unemployed in the United States, the world’s largest economy. Almost 16 million have been estimated in the European Union with the second largest economy on the planet. Both the official unemployment rate did not exceed 8%.

No reduction rate

The world has spent $ 12 trillion on grants to people and businesses, and the lion’s share has fallen on the rich countries while providing loans to the unemployed. According to ILO estimates, had it not been for the astronomical injections, the layoffs would have left a hole of 3.5 trillion dollars in the household budget.

Money is running out quickly even in developed countries, subsidies are melting, and all of this promises soaring unemployment. This means a new wave of crisis since the speed of the recovery depends directly on the situation in the labor market. First, in Europe, where out of 190 million workers, one in three has benefited to one degree or another from state aid in reference to loans for unemployed. Many of them rely on quick payday loans, to keep their family budget alive, here is a great example of such a quick loan https://directloantransfer.com/payday-loans-online-same-day-deposit/ .

At first glance, the labor market in many countries has proven to be more resilient to the crisis than the economy as a whole. Such a position suggests economists from the insurance company Allianz. He admits the strangeness of the coronavirus crisis. Things should have been much worse if we started with the historical relationship between the dynamics of GDP and unemployment.

The gloomy predictions about unemployment and certain types of loans were both exaggerated and optimistic. But that’s just the tip of the iceberg. Unemployment in France, Italy, Spain and the UK is 3 to 5 percentage points above the official rate, and 10% in South Africa. Loans for unemployment tend to be the main financial cushion among workers.

Tips when you lose your job during a pandemic

Use the services of a public employment center

If you have officially worked for at least six months, you can register with the Employment Center to receive unemployment loans. The request can be submitted electronically during quarantine. You will need to send a copy of your passport, NIF, booklet or employment contract, diploma, military ID and a certificate from the last place of work on the amount of the salary.

After quarantine in a few days, you will need to bring the originals of all these documents to get unemployment loans. By the way, the status of unemployed during quarantine must be assigned on the day of submission of documents, and benefits must be paid from the moment of registration of unemployment. However, it is best to contact commercial financial institutions that offer loans to the unemployed.

Invest in yourself

If your employer has been forced to shut down but plans to return to work after the quarantine restrictions are lifted, it’s worth the wait. Now we can work on “Plan B” including getting unemployed loans.

During a break, you can think about how to use your current skills to organize temporary income in addition to obtaining unemployment loans. It can be transcribing and typing, filling out websites, collecting information or providing professional advice online, or ultimately taking out loans online for the unemployed. If the situation allows you not to think about making money, now is the best time to invest.

Try to master the related professions to improve your current position. But if there is a risk that a return to the current job will not happen, then of course a plan “B” is needed. You can turn to freelance work, freelance exchanges and remote working. But it all depends on your experience and skills, your knowledge of the English language. In the latter case, by the way, it’s worth investing the time and energy in the first place. Thus, it will be easier to take out loans for the unemployed.

Ask volunteer recruiters for help

Also, you can turn to employment specialists for help in securing unemployment loans. Now online portals have launched a free anti-crisis career support program offering loans to the unemployed. They give advice to those who have found themselves out of work due to quarantine. The volunteer initiative brought together 70 recruiters, HR managers, executives and career advisers.

The key request now is to help navigate, show directions and possible avenues of development in the current financial situation. Many have lost hope, swallowed up a feeling of depression. However, professional consultants analyze the candidate’s situation. They suggest areas to pay attention to, what to correct in the CV, and how to properly contact the employer to make the search more efficient.

It is both psychological and professional help. Unemployed participants note that they have regained hope and motivation to move, including where to look for new opportunities and what to do to secure employment or temporary income, including loans. Most of the clients have tried to follow the tips for getting the most effective unemployment loans.

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The views and opinions expressed in this article are those of the authors and do not necessarily reflect those of BK Reader.

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