Embrace The Dive With Dr. Michelle Lake
- Dr. Michelle Lake EdD, LMHC, LCPC

- Dec 3
- 3 min read
How To Recover From Being Laid Off or Fired

Being laid off or fired is a type of loss that results in grief similar to when a person experiences a break-up or divorce, the ending of a friendship, or the death of a loved one. When a person is laid off or fired, especially when they were not expecting that to occur, they feel blindsided which increases their grief because they have not had time to prepare for the loss. It is normal to experience the stages of grief such as anger, depression, bargaining, denial, and acceptance. Additionally, being laid off or fired can result in trauma for the person who has experienced the loss. We spend so much of our lives at work that it becomes a part of our identity and so when a person is laid off or fired, it feels like they have lost a part of themselves.
As the dust settles and the reality of unemployment sets in, the psychological effects of being laid off can evolve and deepen. What started as acute emotional reactions can, for some, morph into more persistent mental health challenges. Depression and mood disorders are common long-term effects of job loss (NeuroLaunch, 2024). According to Psychology Today (2023), “Despite a low unemployment rate, there are millions of involuntarily unemployed Americans. There's a definitive link between increased unemployment rates and anxiety, mood disorders, or suicidal behavior.” The continuous stress of job hunting, financial strain, and feelings of inadequacy can wear down even the most optimistic individuals. You might find yourself losing interest in activities you once enjoyed, struggling to get out of bed, or feeling a persistent sense of hopelessness. It’s crucial to recognize these symptoms and seek help if they persist, as untreated depression can have far-reaching consequences on your overall well-being and job search efforts.
Chronic stress, another common long-term effect, can manifest in various physical symptoms. Headaches, digestive issues, muscle tension, and a weakened immune system are just a few ways your body might react to prolonged unemployment stress. It’s a stark reminder of the intricate connection between our mental and physical health.
One of the most insidious long-term effects is the blow to self-esteem and self-worth. In a society that often equates professional success with personal value, being unemployed can lead to feelings of shame and inadequacy. You might find yourself avoiding social situations or struggling to articulate your worth in job interviews. This decreased self-esteem can create a vicious cycle, making it harder to put your best foot forward in your job search.
Social withdrawal and isolation often go hand in hand with these other long-term effects. Financial constraints might limit your ability to participate in social activities, while feelings of shame or anxiety might make you hesitant to reach out to friends and family. This isolation can exacerbate feelings of loneliness and depression, creating a self-reinforcing cycle that’s hard to break.
It’s worth noting that these long-term effects aren’t inevitable. With the right support and coping strategies, many people navigate unemployment without experiencing severe psychological consequences. However, understanding these potential effects can help you recognize warning signs in yourself or loved ones and seek help when needed.
Below are a few techniques to use to recover from being laid off or fired:
Receive emotional support from family members or friends.
Talk to a therapist or life coach to process your grief and trauma as well as discuss potential career options you have moving forward.
Remember, a layoff doesn’t define you. Your worth isn’t determined by your employment status or job title. This experience, challenging as it may be, is an opportunity for growth, self-discovery, and potentially, a new direction in life.
It’s crucial to remember that these effects, while intense, are typically temporary. With time, support, and the right coping strategies, it’s possible to navigate this challenging period and move forward. The key is to be patient with yourself, seek help when needed, and take proactive steps towards your recovery and future.
As you move forward, carry with you the resilience you’ve built, the lessons you’ve learned, and the strength you’ve discovered within yourself. Whether your next step is a new job, a career change, or something entirely different, know that you have the capacity to overcome this challenge and create a fulfilling future.
Your layoff may be an ending, but it’s also the start of something new. Embrace the journey, seek support when you need it, and trust in your ability to navigate this transition.
References
NeuroLaunch (2024). Psychological Effects of Being Laid Off: Navigating the Emotional Aftermath. Retrieved from Psychological Impact of Layoffs: Navigating Emotional Challenges
Psychology Today (2023). 14 Easy Tactics to Recover From a Layoff. 14 Easy Tactics to Recover From a Layoff | Psychology Today
