You’ve Been Laid Off, What’s Next?

By Carmen Neagu, 7 October 2025

Losing your job is one of the hardest experiences. It’s a shock, even if you saw it coming. But being laid off is not the end of your career — it’s the start of your next chapter.

The Bigger Picture

The UK jobs market has cooled. ONS data shows there are now 728,000 vacancies (Jun–Aug 2025), down from around 1,266,000 vacancies three years ago. That’s a drop of more than 500,000 roles — around 42% fewer opportunities since 2022.

At the same time, unemployment has risen sharply. In May–Jul 2022, there were about 1.25 million people unemployed. Today, there are roughly 1.67 million — an increase of over 400,000 people competing for work.

And the outlook isn’t calmer. In its latest Labour Market Outlook, the CIPD found that one in four employers expect to make redundancies over the next few months — particularly in the private sector. In other words: we’re likely to see more layoffs, not fewer.

What that means for you: three years ago, you might have needed around two interviews to land one offer. Now, with fewer jobs and more competition, it’s closer to four interviews for the same result. In simple terms, your job search has become almost twice as hard.

Sort the Financial Basics

When you’re laid off, one of the first things to do is get a clear picture of your financial position, which will give you stability while you plan your next step.

Final pay. Make sure your last payslip includes everything you’re owed up to your final working day.
Holiday pay. Employers are required to pay you for any unused annual leave.
Redundancy pay (if applicable). If you’ve been made redundant, check whether you qualify for statutory redundancy pay or an enhanced package. Even if your layoff wasn’t officially redundancy, you may still be entitled to notice pay depending on your contract.
Review your commitments. Look at your monthly outgoings — rent or mortgage, utilities, subscriptions, credit cards, loans. Identify where you can trim back and where you might need to seek support.
Talk to providers. Many utility companies, lenders, and even broadband or mobile providers have hardship options. If you get in touch early, they may offer reduced payments, payment holidays, or flexible plans.
Check your benefits. Beyond Jobseeker’s Allowance (which you can claim regardless of the reason for layoff, as long as you’ve paid contributions), you may also be eligible for Universal Credit, housing support, or childcare help.

Rebuild Your Toolkit

Once the paperwork and finances are under control, shift your focus to getting market-ready again.

Update your LinkedIn profile. Refresh your headline to reflect the roles you’re targeting, not just your last job title. Add recent achievements and make sure your “Open to Work” settings are on. Premium features (if you have them) give you extra insights into how you compare to other applicants — use them.
Polish your CV. Tailor it for the jobs you want next, not just what you’ve done before. Keep it concise, outcome-focused, and ready to adapt for different roles.
Reach out to recruiters. Don’t wait for opportunities to come to you. Contact recruiters in your sector directly, let them know you’re available, and share your updated CV.
Tap into your network. Friends, ex-colleagues, mentors — let people know you’re looking. Many jobs are filled before they’re advertised, and a personal recommendation can move you to the front of the queue.

Create Structure and Keep Growing

Losing your job doesn’t just affect your income — it also removes the routine that work gives you. If you haven’t had many periods of inactivity before, the sudden space in your day can feel unsettling and, at times, lonely. That’s why it’s so important to put some structure back into your life while you search.

Daily routine. Treat job hunting like a job in itself. Block out time for applications, networking, and following up — but don’t make it your whole day.
Upskill. Dedicate time to short courses, training, or reading in your field. Even small steps show employers that you’ve stayed proactive and invested in yourself.
Wellbeing. Include exercise, fresh air, and regular meals in your routine. Looking after your health keeps your energy and mindset strong.
Stay connected. Reach out to friends, former colleagues, or mentors. Unemployment can feel isolating, but you don’t need to go through it alone.

A structured day helps you feel productive, while upskilling and staying connected keep you moving forward. Together, they give you momentum and resilience until the right opportunity comes along.

Personal Advice: Register for Jobseeker’s Allowance (JSA)

One of the first steps after being laid off is to apply for Jobseeker’s Allowance (JSA). This is not means-tested, which means you can claim it regardless of your past salary, your partner’s income, or any savings you may have. If you’ve been in steady work for a long time, especially in a higher-paid role, applying might feel uncomfortable — but it’s a lifeline worth using. The money won’t replace your salary (£92.05 per week if you’re over 25, paid for up to 6 months), but every bit of income helps while you search, because you never know how long you’ll be out of work.

The process is done online, and you’ll need to have paid enough National Insurance contributions over the past two tax years to qualify. It’s important to apply as soon as possible:

There is a 7-day waiting period, which won’t be paid.
You cannot backdate a claim — payments only start from the date you apply.
Processing takes time: Jobcentre Plus usually takes 2–3 weeks before contacting you with an appointment.

At your first face-to-face meeting, you’ll need two forms of ID and proof of address. You’ll also commit to actively looking for work (roughly full-time hours), and you’ll be assigned a job coach with appointments every two weeks. Only after this process does your first payment go through — usually around 5–6 weeks after applying, which is why it’s so important to make that application quickly.

It can feel awkward, even like a step backwards, but it isn’t. Accessing JSA gives you breathing room, and the Job Centre can also support you with CV writing, interview skills, and pointing you toward training. If this is your first time facing unemployment in years, this is a good and practical place to start.

A Different Way to See It

Being laid off has a huge impact, and in the moment it’s hard to see anything positive. But try to view this new time as an investment in you.

Use it to upskill, to reconnect with friends and family, to finally read that book you’ve been putting off, or even to explore a career path you hadn’t had the space to consider before. You can take on projects you always wished you had more time for.

It may feel counter-intuitive, but with focus and the right actions, this won’t be a long-term situation. In fact, you may look back on it as a period of opportunity and growth — a pause that propelled you forward.