Skip to content
Join our Newsletter
Sponsored Content

What To Do if You’ve Lost Your Job During Due to the Coronavirus Crisis

The world economy has been falling like a stone into the abyss for several months. Unemployment has increased marginally. Although, the pandemic dealt a crushing blow to employment.

The world economy has been falling like a stone into the abyss for several months. Unemployment has increased marginally. Although, the pandemic dealt a crushing blow to employment. The number of working hours worked in the world at the peak of the first wave fell by the equivalent of 500 million jobs, and earnings by 10% as the International Labor Organization (ILO) shared the latest estimates. The salvation offered to those who lost their jobs are loans for unemployed.

The number of people who want to get loans for  unemployed differs greatly from the official statistics. By the fall, six months after the start of the pandemic, about 13 million people were unemployed in the United States as the largest economy in the world. Almost 16 million were estimated in the European Union with the second-largest economy on the planet. The official unemployment rate both did not exceed 8%.

No Cut Rates

The world spent 12 trillion dollars on subsidies to the population and business, and the lion's share fell on rich countries while providing loans for unemployed. According to ILO estimates, if it weren't astronomical injections, the layoffs would have punched a $3.5 trillion hole in household budgets. 

Money is rapidly running out even in developed countries, subsidies are melting, and all this promises a surge in unemployment. This means a new wave of crisis since the speed of recovery directly depends on the situation in the labor market. First of all, in Europe, where out of 190 million workers one in three received state support to one degree or another referring to loans for unemployed. Many of them rely on the quick payday loans, to keep their family budget alive, here is a great example of such quick loan .

The labor market in many countries turned out to be more resistant to the crisis than the economy as a whole at first glance. Such a position suggests the economists of the Allianz insurance company. He admits the strangeness of the coronavirus crisis. Things should have been much worse if we proceed from the historical relationship between the dynamics of GDP and unemployment.

The gloomy predictions regarding unemployment and some types of loans were exaggerated as well as optimistic. But that's just the tip of the iceberg. Unemployment in France, Italy, Spain, and the UK is higher than the official one by 3-5 percentage points, and in South Africa by all 10 percent. Loans for unemployment tend to be the main financial cushion among workers.

Tips When Losing Your Job During a Pandemic

Use the Services of a Public Employment Center

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

After quarantine within 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 better to contact commercial financial institutions offering loans for unemployed.

Invest in Yourself

If your employer has been forced to shut down but plans to return to work after the quarantine restrictions have been lifted, it is worth waiting out. Now we can work on "Plan B" including the fact of getting unemployed loans.

In a break, you can think about how to use your current skills to organize temporary earnings besides getting unemployment loans. This can be transcribing and typing, filling websites, collecting information or providing professional advice online, or ultimately taking online unemployed loans. If the situation allows you not to think about making money, this is the best time to invest.

Try to master related professions to improve your current position. But if there is a risk that a return to the current job may not occur, then, of course, a plan "B" is needed. You can look towards self-employment, freelancing exchanges, and remote work. But it all depends on your experience and skills, knowledge of the English language. In the latter, by the way, it is worth investing time and energy in the first place. So, it will be easier to take loans for unemployed.

Ask Volunteer Recruiters for Help

Also, you can turn to employment specialists to get the help of getting unemployment loans. Now, online portals launched a free anti-crisis career assistance program offering loans for the unemployed. They give pieces of advice to those who have been left without work due to quarantine. The volunteer initiative brought together 70 recruiters, HR managers, executives, and career consultants.

The key request now is to help navigate, show directions and possible ways of development in the current financial situation. Many lost their hope, swallowed up a feeling of depression. Still, professional consultants analyze the candidate's situation. They suggest which areas should be paid attention to, what to correct in the resume and how to properly contact the employer to make the search more effective.

This is both psychological and professional help at the same time. Unemployed participants note that they have regained hope and motivation to move, understood where to seek new opportunities and what to do to get a job or temporary income including loans. Most of the customers tried to follow the tips of getting the most effective unemployment loans.