Navigating uncertainty: 5 steps to take after a government layoff

Whether you’re a federal, state or local government employee, this period of political transition—between the Biden and Trump administrations—may bring feelings of anxiety, frustration, uncertainty or even cautious optimism. Many federal workers head into the office each day wondering, “Will I have a job tomorrow?” While those feelings are completely valid, it’s still important to stay proactive in your job search—even if that search isn’t urgent just yet.

As of February 2025, about 23.6 million Americans were employed in the government sector, according to the Bureau of Labor Statistics. In a November 2024 report, the Pew Research Center found that the federal government employed just over 3 million people—about 1.87% of the entire civilian workforce. The impact is even more concentrated in Washington, D.C., where USAFacts reports that 43.3% of residents are employed by the federal government.

Unfortunately, regardless of sector, individuals are replaceable. While it is wonderful to work for a company that is loyal to its employees—from the beginning of their careers to retirement—this loyalty is uncommon. Douglas Broom of the World Economic Forum noted, “American adults have held down an average of 12 [jobs] by the time they’re 55. But now we’re entering an era in which most of us won’t just have one career, but many.”

That’s why it’s wise to always be passively looking for new opportunities, even if you’re currently satisfied with your role. What’s the harm in looking? Nothing. Why is it beneficial to explore what’s available? Because things change… Consider the announcement made below.

On Tuesday, March 11, 2025, the Education Secretary announced a reduction in force projected to impact approximately 50% of the Department of Education’s workforce. Regardless of how one feels about these cuts, it’s important to recognize that workforce reductions at various levels of government are happening—and more are likely on the way.

As reported in Federal News Network, “On paper, the big deadline is Thursday [March 13, 2025] for agencies to submit plans for large-scale layoffs, called a reduction in force. But agencies have been getting those plans in early, and telling employees ahead of that deadline that their jobs are about to expire.”

Therefore, even during periods of anger, stress, frustration, anticipation, excitement, and more, you might be thinking, “What can I do now?” Like many individuals who are laid off or foresee a layoff coming, you might just be trying to make it through the day, which is understandable. To assist you in this challenging period, I have created five immediate action points:

1. Remember that you are valued.

Many of us take great pride in our work. We remain passionate about what we do, how we contribute to our organizations, and we value the work that we do each day. No matter what happens, don’t forget your value. Your self-worth/value does not lie only in your career. People get self-worth from a variety of sources… If your only sense of value is in one aspect of your life, it’s time to do some brainstorming about other areas of self-worth. Your entire existence shouldn’t be wrapped up in your career. Your career is only a portion of who you are.

There are so many emotional, physical, and spiritual impacts of being laid off. Stanford University has created various coping strategies to handle layoffs, which include: (1) taking care of your body, (2) nurturing yourself, (3) maintaining supportive relationships, (4) trying to keep a positive mental attitude, and (5) writing to express feelings, emotions, goals, and more.

Shutting yourself away from the world and wallowing in your emotions is acceptable for a few days, but this is merely a temporary solution (which never works and is not productive). As Helen Keller stated, “When one door of happiness closes another one opens, but often we look so long at the closed door that we do not see the one that has been opened for us.” There’s a bright future ahead… Let’s focus on the doors that will soon be opening for you.

2. Do not sign anything

If you have been laid off, it’s critical to read the terms and conditions of your layoff. My best HR advice to you is that you do not sign anything until you have a comprehensive understanding of what you are signing. In my days working in various HR departments, unfortunately, I have seen organizations take advantage of employees (even during the most difficult periods in their lives). I have witnessed employees being coerced into signing documents about their layoffs before they leave the office.

DO NOT SIGN ANYTHING UNTIL YOU UNDERSTAND WHAT YOU ARE SIGNING!

If an organization lays you off, terminates your employment, etc., you owe nothing to that organization (in terms of signing documents by the end of the day). You need to protect yourself! Therefore, take time and, if necessary, seek outside legal counsel/support to understand your effective layoff date, severance offerings, re-hiring eligibility, and unemployment compensation options. You’ll want to understand your state’s unemployment laws.

Did you know that you can negotiate your layoff package? Most people don’t. While this negotiation opportunity might not be an option at the federal level, presently, it’s still something worth exploring. Check out this resource for more information about how to negotiate your layoff/severance package.

3. Review your financial situation

Most of the U.S. population “works to live” rather than “lives to work.” Therefore, understanding how long your emergency fund (if you have one) might last, how far your severance pay will go, and what your ideal budget will be is essential. During points of financial strain, it is beneficial to reach out to lenders (if applicable) to determine if they will work with you on a deferred payment schedule or have hardship programs that can assist you. For tips about managing debts during layoffs/periods of career transition, please see this article.

4. Apply for unemployment compensation

Whether you are laid off or furloughed, you might qualify for unemployment benefits. As a laid-off federal employee, you are eligible for unemployment compensation. The United States Department of Labor provides a detailed breakdown of the Unemployment Compensation for Federal Employees (UCFE) program on its website.

If you’d like to learn more about how to apply for state and local unemployment compensation benefits, please check out this resource. For future reference, during governmental shutdowns, as a current federal employee, you also might be eligible for unemployment compensation.

Unemployment can take some time to process. In fact, the U.S. Department of Labor notes that the time for processing unemployment claims typically ranges from one to three weeks. The same timeframe is often true at the federal level. Therefore, don’t expect unemployment compensation to be dispersed immediately.

5. Review your health insurance options

Medical debt remains a widespread issue in the United States. About 14 million adults — or 6% of the population — owe more than $1,000 in medical debt, and roughly 3 million people owe more than $10,000, according to a 2024 report by KFF, a nonprofit health policy group. One way to reduce the likelihood of falling into medical debt is to maintain health coverage, even during periods of unemployment.

If you have lost your job with the federal government, you will likely lose access to your federal health benefits after a specific period. Understanding when your benefits end is essential. It is critical to ensure your federal health benefits don’t lapse before you are insured again. Please consider obtaining additional coverage through the Health Insurance Marketplace, the Consolidated Ombudsman Budget Reconciliation Act (COBRA), or through your spouse’s or partner’s plan.

You might be thinking, “My spouse’s insurance enrollment period just ended…” Don’t worry. A job loss is a qualifying event that allows for immediate healthcare enrollment despite the open enrollment timeframe closing. For information about other qualifying events, please see this resource.

Completing the tasks can be a feat in itself. In the next article, Part 2, I will cover the job search process for those who have recently been laid off. In the interim, while you work through this process, remember to show yourself grace. And if you’re a student at CSU Global, know that you have access to a variety of support services—including Career Development Services, counseling services, academic advising, and more—to help you navigate what’s next.

This is two-part article. You can read part two here.