2024 is off to a not-so-great start with a wave of layoffs across multiple industries. It’s an especially hard blow after the Ministry of Manpower reported that retrenchments doubled last year1 to 14,320, up from 6,440 in the year before. Chances are, you or someone you know has been affected by one of these retrenchment exercises. With this trend of layoffs set to continue2 for the foreseeable future, I sat down with two friends who were laid off themselves, to get their insights into how they’ve been handling sudden unemployment. Here’s a brief background on the both of them.
Names have been changed to protect their privacy.
What was your initial reaction when you found out you were being laid off? How did you manage your emotions?
Ryan: Personally, I wasn’t all too affected as I was already contemplating leaving my job. I was struggling with motivation in my role as I was assigned a new reporting manager and was mentally prepared to resign. Being laid off just accelerated my plans a little.
Emotionally though, I really started to miss the friends I made during my time at the company. The great team was one of the main reasons I stayed on as long as I did. You spend so much time at work that your colleagues inevitably start to feel a bit like family.
How did you cope with the challenges that followed the layoff?
Nathan: Having been laid off twice in the span of three months, I’ve had my fair share of “battle scars”. Here’s a couple things I learnt from that experience:
- Don’t depend on your job to occupy your time - We all spend about 40 hours a week at work. That’s a lot of time. When I was without a job, it was difficult for me to watch as everyone else went to work, but I soon realised there’s more to life than the regular nine to five. It’s important to engage in hobbies or side gigs and if it’s something that’s money making, that’s definitely a plus.
- Reach out – Don’t beat yourself up or say you’re a burden. Losing your job can be isolating especially when you try and process it by yourself. Instead, reach out to family and friends for support. These are the people in your life you can count on for both good times and bad.
- Leverage on your network and don’t be afraid to make cold calls - The vacancies posted on LinkedIn and job boards are just the tip of the iceberg. Don’t just hit the easy apply button and wait for companies to get back to you. Reconnect with your ex-colleagues and friends to uncover hidden opportunities. It always feels more natural connecting with a real person who knows of your abilities rather than having a text resume getting scanned by some AI resume scanner.
What were the most effective steps you took to maintain your physical/emotional well-being during the period of unemployment?
Ryan: Frankly, I took it as an extended break where I could finally do all the things that I never had time for. I remember the first day after I had been laid off, I slept for 17 hours straight to pay off my accumulated sleep debt. Since then, I’ve been taking care of my social and mental health by meeting friends, spending more time with family (I usually had only one dinner a week with them when I was working) and indulging in “unproductive” activities like catching up on my backlog of shows and games.
Thankfully, my wife and I have a savings plan that we both adhered to since we started working many years ago. It literally became my emergency fund. This gave me a safety net when I lost my job by helping to reduce any potential short to mid-term financial stress.
Other than that, I also found ways to support myself financially through things I enjoy while cutting back on certain expenses like eating out at cafes and such. This allowed me to prolong the time I could remain "funemployed".
Were there any skills or strengths you developed or honed as a result of being laid off?
Nathan: I learned a harsh lesson about prioritising myself. I used to work very hard in hopes of seeing results like career growth or recognition but that was seldom the case. Even after being laid off the first time, I pushed myself harder thinking it was a “me” problem, but I now realise going at 110% is unsustainable in the long run. Being in that work mode made things that I enjoyed like nurturing networks and relationships mere after-thoughts when things were good. I now know that it’s these very things that you can lean on especially in those extended moments of silence, questioning what to do next when you’re at home at noon and having already applied for 30-plus jobs or attending three interviews that day.
This self-awareness should stop me from burning out in my next job and in the meantime, my girlfriend and family sure aren’t complaining about the extra attention I am showering on them. Haha!
Share a specific challenge you faced during the unemployment period and how you overcame it.
Ryan: The endless stream of rejections from potential employers was tough. Job searching can be a tiring, soul-draining endeavour. There was a strong sense of urgency to be productive and find something immediately after one to two months of unsuccessful job applications and it made me anxious for quite a while. Being stuck in limbo for an extended time made me guilty about the fun I was having like watching shows, playing games, or just napping as I felt I was not doing enough.
Overcoming this was a matter of changing perspectives about my situation: viewing this as an opportunity rather than a problem. Setting small daily goals for myself also helped greatly in making me feel productive. For instance, Monday was my resume day where I updated and blasted out my CV. Wednesdays and Fridays were reserved for interviews, and I’d schedule dedicated gym days in between to stay physically active. I’ve come to accept that finding a new job takes time, and I would rather find a job that excites and motivates me. By meeting my daily goals, I can enjoy my down time a lot more.
Were there any valuable lessons or insights you gained from the layoff experience that could help others in a similar position?
Ryan: With the world becoming increasingly volatile, it’s now more important than ever to think for yourself. Don’t just blindly put all your eggs into the basket that is your job. Build yourself a lifeboat by turning one of your hobbies or skills into a side gig for extra income.
Nathan: After back-to-back retrenchments, I was starting to think that the problem was me but the truth is that companies restructure all the time. Chalk it up to bad timing or luck but do not take your retrenchment personally. As you try and figure out your next move, try to do three things:
- Be prepared. Update your resume regularly and keep an eye out for opportunities. Don’t be afraid to apply for new roles too.
- Take time to manage your finances well (savings, investments). Start doing this early, so you have a safety net to fall back on.
- Pursue the things you love and spend time with people you care about. These activities will keep you productive and grounded.
How do you plan to “retrenchment-proof” yourself and your family from future lay-offs?
Ryan: My wife and I will continue the good savings habits we developed early in our relationship. We set aside 50 to 60% of our salaries every month as savings that we divide into different “pots of money” for different purposes, like for house reno, travel, insurance, investments and a rainy-day fund. Any remaining funds then go towards our monthly expenses.
By sticking with this savings mentality, we never had to spend on credit. Our house reno was paid fully with our savings and any other recurring expenses are well taken care of. Because of this, even though I’m unemployed, I do not have to worry much about financial commitments other than the house mortgage (which is settled using CPF savings - we have a runway of 2 years as we left S$20k in our accounts when we first got our BTO flat and intentionally structured our HDB loan to allow 2 years of payments without any CPF top ups).
I don’t have to worry too much about my parents as they’ve paid off their house and have enough for their retirement. And while there are no plans for kids at the moment, the money we set aside for investments can be channelled towards their future education.
Nathan: The standard advice I follow is to have 6 months of emergency funds stored away at all times. Remember to replenish these funds whenever they’re depleted. Secondly, always be aware of your responsibilities and debts. Regularly evaluate your financial situation and cut back on non-essentials where you can.
Getting laid off is not the end of the world
Speaking to Ryan and Nathan renewed my perspective on layoffs. Losing your job is certainly not fun but it can be seen as a reset of sorts. A time to rest and re-evaluate the trajectory of both your life and career. Their stories of hope are underscored by the importance of having sound financial planning in the form of emergency funds or alternate sources of income.
Oh, and if you’re wondering where both my dashing friends wound up, Nathan has since found a new job that challenges and excites him. Ryan is still unemployed but continues to send dozens of resumes out each week in between playing with his pet chinchilla, Biscuit.
Note:
1. Source: Channel News Asia, “Retrenchments in Singapore more than doubled in 2023: MOM report”, accessed 14 February 2024.
2. Source: The Business Times, “With ‘tough year’ ahead, NTUC calls for support for displaced workers, caregivers in Budget 2024”, accessed 14 February 2024.
