A layoff is a shock even when you saw it coming. The first days are when the most expensive mistakes happen: a benefit claim filed late, health coverage that lapses, a severance agreement signed without reading it, or a panicked wave of applications with a resume that has not been updated in years. None of that is your fault, and all of it is avoidable with a short plan.
This guide is that plan: what to do in the first 48 hours, the benefits and rights to check in the US and Canada, how to talk about the layoff, and a 30-day job search schedule. Layoffs are common: the U.S. Bureau of Labor Statistics counted 1.6 million layoffs and discharges in August 2026 alone. In September 2026 the median unemployed person in the US had been looking for 11.5 weeks, so plan your money and energy for a search of a few months, not a few days.
Key takeaways
- Apply for unemployment benefits right away: in the US through your state program, in Canada for EI within 4 weeks of your last day of work.
- Sort out health coverage before it lapses (COBRA or a Marketplace plan in the US; check provincial coverage and any extended benefits in Canada).
- Read the severance or termination letter before signing anything, and check your minimum entitlements.
- Write a short, neutral layoff story and line up references while your contacts are fresh.
- Take a few days to reset, then run a structured 30-day plan: materials in week 1, applications and outreach from week 2.
The first 48 hours: a checklist
Before you think about the next job, protect your income, your coverage and your options. Work through this list while the details are fresh:
- Get everything in writing: your last day of work, final pay date, severance offer, what happens to unused vacation, bonus or commission, stock or pension, and when your benefits end.
- Do not sign the separation agreement on the spot. Ask how long you have to review it.
- Save what you are allowed to keep: your own pay stubs, benefits information, performance reviews and personal contacts. Do not take confidential company files.
- Ask for a reference from your manager or a senior colleague while the goodwill is fresh, and connect with your colleagues on LinkedIn.
- Note your benefit dates: when health coverage ends and any deadlines for continuing it.
- Make a budget: severance, final pay, savings and expected benefits against your fixed monthly costs. This tells you how long you can search before you need any job.
United States: unemployment, health coverage and your rights
Unemployment insurance
Each state runs its own unemployment insurance program, following federal guidelines. According to the U.S. Department of Labor, you generally qualify if you are unemployed through no fault of your own, which in most states means you lost your job due to a lack of available work, and you meet your state's work and wage requirements. The Department of Labor's advice is to contact your state's unemployment insurance program as soon as possible after becoming unemployed. File in the state where you worked, keep a record of your job search activities (most states require them), and answer every question on the claim accurately.
Health coverage: COBRA or the Marketplace
COBRA lets you and your family keep your employer's group health plan after a job loss. It generally applies to plans of employers with 20 or more employees, and you may have to pay the full premium plus up to 2% (102% of the cost to the plan), which is often much more than you paid as an employee. Coverage usually lasts up to 18 months, and you have 60 days to enroll, starting when your job-based coverage ends or when you receive the COBRA election notice, whichever is later.
Compare COBRA with a plan on HealthCare.gov (or your state's marketplace): losing job-based coverage can qualify you for a Special Enrollment Period, and with a lower income you may qualify for savings. Check the dates carefully so you do not end up uninsured.
Notice and severance
The federal WARN Act requires advance notice for qualified plant closings and mass layoffs, and some states have their own notice laws. Severance pay itself is not required: the Department of Labor states there is no requirement in the Fair Labor Standards Act for severance pay. It depends on your contract, company policy or what you negotiate. If you are offered severance in exchange for signing a release of claims, read it carefully and, for a large amount or a complex agreement, consider asking an employment lawyer to review it.
Canada: Employment Insurance, ROE and termination pay
Employment Insurance (EI)
Apply for EI regular benefits as soon as you stop working. The Government of Canada is explicit: if you apply more than 4 weeks after your last day of work, you may lose benefits. Do not wait for paperwork: the application page says you can send required documents after you apply, and it asks you to declare amounts such as vacation pay, severance pay and pay in lieu of notice. A one-week unpaid waiting period applies to a new claim before payments begin.
Your employer issues a Record of Employment (ROE), which Service Canada describes as the single most important document used to apply for EI. You can view or print your ROEs in My Service Canada Account. If you had several employers in the past year, you may need an ROE from each of them.
Notice, termination pay and severance
Minimum notice and severance are set by provincial employment standards (or the federal Canada Labour Code for federally regulated employers such as banks, airlines and telecoms). In Ontario, for example, the Employment Standards Act sets a minimum notice (or pay instead of notice) that grows from 1 week for less than a year of service to 8 weeks for 8 years or more. Ontario severance pay is a separate entitlement for employees with 5 or more years of service whose employer has a global payroll of at least $2.5 million or severed 50 or more employees in six months because all or part of the business closed, up to a maximum of 26 weeks. These are minimums: contracts and common law can entitle you to more, which is why many Canadians have a termination package reviewed by an employment lawyer before signing.
Check the official page for your situation. Benefit rules, amounts and deadlines change, and they depend on your province or state and your work history. Use the official pages in the sources below rather than general advice, including this guide.
United Kingdom. According to GOV.UK, you will normally be entitled to statutory redundancy pay if you are an employee and have worked for your current employer for 2 years or more. You may also be able to claim Universal Credit; check GOV.UK for eligibility.
Take a short reset, then set up your search
It is fine to take a few days before you start applying. A rushed application with an old resume and a raw story usually does more harm than a week of preparation. Use the reset to decide what you want next:
- Same role, new company: the fastest path in most cases, because your experience matches postings directly.
- Step up or sideways: realistic if your recent results support it.
- A change of field: possible, but it usually takes longer; consider a bridge role while you build skills.
- Contract or temporary work: a good way to keep income and add recent experience while you search for a permanent role.
Pick 1-3 target job titles and a list of employers. Everything else in your search depends on that list. Our step-by-step job search guide explains how to choose titles and channels.
Update your resume and LinkedIn
Add your most recent role with its real end date (the month and year), and lead with the results from your last two or three years. You do not need to write "laid off" on your resume. Make sure the resume matches your target titles: a summary that names the role you want, bullets that show outcomes, and the skills that appear in current postings.
On LinkedIn, update your headline to your target role and specialty, add the end date to your last position, and turn on Open to Work (visible to everyone or to recruiters only). Many people now post a short, positive note that they were affected by a layoff and what they are looking for; it often brings referrals from former colleagues.
If your resume is several years old, start from a model: our resume examples by job title show complete one-page resumes for 40 US and Canadian jobs. Then check it against a real posting before you apply.
Tell your layoff story in two sentences
Recruiters ask "Why are you looking?" in almost every first call. Layoffs are common and are not held against you, as long as your answer is short, factual and moves to what you want next. Avoid criticizing the company or your manager.
Script: "Why did you leave your last job?"
"[Company] went through a restructuring in [month] and my role was one of [number / several] positions eliminated in [team or department]. Before that I [one concrete result, e.g. "led the migration of our billing system, which cut invoice errors in half"], and I'm now looking for a [target role] where I can do more of that, which is why this position caught my attention."
Template: message to former colleagues and your network
Hi [Name], As you may have heard, my role at [Company] was eliminated in the recent layoffs. I'm now looking for a [target role] position, ideally in [industry / city / remote]. If you hear of anything that fits, or know someone at [target company 1] or [target company 2] I could talk to, I'd really appreciate an introduction. And I'm happy to return the favour any time. Thanks, [Your name] [LinkedIn URL]
Ask two or three people who know your work to be references now, and tell them which roles you are applying for so they can speak to the right strengths.
Your 30-day job search plan
Treat the search like a project with a weekly rhythm. If you have savings and severance, protect a few hours a day for it and keep the rest of your day for rest, exercise and people; burnout makes searches longer.
| Days | Focus | Actions |
|---|---|---|
| 1-3 | Protect yourself | Benefits claim filed, health coverage decided, severance reviewed, budget done, references asked |
| 4-7 | Materials | Target titles chosen, resume and LinkedIn updated, list of 30 target employers, job alerts set on 2-3 sites |
| 8-14 | First applications | First batch of tailored applications to fresh postings; message 10-15 former colleagues and contacts; contact recruiters in your field |
| 15-21 | Rhythm | A steady weekly volume of tailored applications, follow-ups on week-2 applications, 2-3 conversations with people at target companies |
| 22-30 | Review and adjust | Count applications, replies and interviews. Few replies: fix targeting or the resume. Replies but no offers: work on interviews |
How many applications should a "steady rhythm" be? It depends on your field and level; see how many jobs to apply to per week. Track each application, its date and the next follow-up in one place so nothing slips.
Tailoring every application takes time, which is exactly what you have the most of right now and should spend on the right jobs. Use tools for the repetitive parts so your energy goes into targeting, outreach and interview preparation.
Free help you can use
- US: American Job Centers offer free career counseling, workshops and training referrals, and your state unemployment office may require or offer reemployment services.
- Canada: every province funds free employment services (resume help, workshops, sometimes training funding); ask about them when you apply for EI. Job Bank lists job openings and wages by region.
- Outplacement: if your employer offers outplacement services as part of the package, use them.
- Your network: former colleagues who were laid off at the same time are a good source of leads; share postings with each other.
Mistakes to avoid after a layoff
Waiting to file for benefits. In Canada, applying more than 4 weeks after your last day of work may cost you benefits; in the US, the Department of Labor advises contacting your state program as soon as possible.
Letting health coverage lapse. Note the COBRA election deadline and the Special Enrollment Period window before you decide.
Signing the package without reading it. Check it against your minimum entitlements and your contract first.
Mass-applying with an old resume. Generic applications rarely get replies; ten tailored ones beat fifty copies. See how to tailor your resume.
Hiding the gap or the layoff. A short, honest explanation works; see how to explain a gap in your resume if the search runs long.
Searching alone. Tell people what you are looking for. And if the search wears you down, read how to recover from job search burnout.
Frequently asked questions
What should I do immediately after being laid off?
Get your last day, final pay, severance terms and benefit end dates in writing, do not sign the separation agreement on the spot, apply for unemployment benefits (state unemployment insurance in the US, EI in Canada), decide how you will keep health coverage, make a budget and ask for references.
How soon should I apply for EI after a layoff in Canada?
Right away. The Government of Canada says that if you apply more than 4 weeks after your last day of work, you may lose benefits. You can send required documents, such as your Record of Employment, after you apply.
Can I get unemployment if I was laid off in the US?
Usually, if you lost your job through no fault of your own, such as a lack of available work, and meet your state's work and wage requirements. Each state runs its own program, so file with the state where you worked as soon as possible.
How long does COBRA last after a layoff?
Usually up to 18 months, and certain life events can extend it to 36 months. You have 60 days to enroll, starting when your job-based coverage ends or when you receive the election notice, whichever is later, and you may have to pay up to 102% of the plan cost.
Is severance pay required?
In the US, the Fair Labor Standards Act does not require severance pay; it depends on your contract, company policy or negotiation. In Canada, provinces set minimum notice or termination pay, and some, like Ontario, also require severance pay in certain cases. Contracts and common law can entitle you to more than the minimum.
How do I explain a layoff in an interview?
In one or two neutral sentences: the company restructured and your role was eliminated, followed by a concrete recent result and why the job you are interviewing for is your next step. Do not criticize your former employer.
How long does it take to find a job after a layoff?
It varies by field, level and location. In the US, the median time unemployed people had been looking was 11.5 weeks in September 2026, and about 27% had been unemployed for 27 weeks or more, according to the Bureau of Labor Statistics. Budget for a few months.
Sources
- U.S. Department of Labor: Unemployment insurance
- U.S. Department of Labor (EBSA): COBRA continuation coverage
- HealthCare.gov: Special Enrollment Period
- U.S. Department of Labor: Severance pay
- U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act
- Government of Canada: EI regular benefits: how to apply
- Government of Canada: Record of Employment
- Government of Ontario: Employment Standards Act guide: termination of employment
- Government of Ontario: Employment Standards Act guide: severance pay
- U.S. Bureau of Labor Statistics: Job Openings and Labor Turnover Summary, August 2026
- U.S. Bureau of Labor Statistics: Table A-12: Unemployed persons by duration of unemployment
- GOV.UK: Redundancy: your rights (redundancy pay)
Figures are quoted from the sources above as of October 14, 2026. Laws, benefit rules and immigration programs change: check the official page before acting. Read how we research and fact-check.
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