Title: What Are the Negative Effects of Job Loss? | Career Trend
Headings: What Are the Negative Effects of Job Loss?
What Are the Negative Effects of Job Loss?
Income
Benefits
Career
Physical and Emotional Health

Content: Income
Losing a job has the immediate consequence of loss of income, which, if you don’t receive a generous severance package or have significant savings, can cause stress, damage to your credit and other negative consequences. In some cases, your employer may provide a severance package equivalent to several weeks or months of pay, but if you’re fired for cause, you may not be eligible for severance pay. Losing your job due to firing can also limit your ability to collect unemployment benefits in some states; for example, if you’re fired for theft or insubordination, you may not be eligible for unemployment. Even if you do qualify for and collect unemployment benefits, your weekly pay will only be a percentage of your previous salary. Benefits
In addition to affecting your income, losing your job also affects your access to benefits. Unless you qualify to purchase health insurance through COBRA – which is often expensive — you’ll lose any health insurance benefits when you lose your job. While you can keep any retirement accounts you’ve established with the employer, if the employer matched your contributions and you leave before those contributions are fully vested, you’ll lose the matching contributions. Depending on how long you’ve been employed, that could translate into thousands of dollars. Losing your job can also end your access to other benefits, such as gym memberships, tuition reimbursement and child care.