In the first 30 days after a layoff, work in this order: secure income and health coverage, get your paperwork, story and references straight, then restart the search on a steady weekly routine. In the United States, file for unemployment insurance as soon as you are out of work, because the Department of Labor says the first payment generally takes two to three weeks. You have at least 60 days to decide on COBRA health coverage, so use that time to compare it with a Marketplace plan.
By week two you should be updating your resume and telling people. By week four you should be applying every week at a pace you can keep up.
Key takeaways
- File for unemployment benefits in the first days, generally in the state where you worked. Waiting only delays the first payment.
- Do not sign a severance agreement on the day you receive it. Take it away and read it.
- You have at least 60 days to elect COBRA and 60 days to pick a Marketplace plan. Compare both before you choose.
- Ask for references and agree on how your departure will be described while people still remember your work.
- Start applying in week two or three, on a schedule, not in a burst.
01
What should you do each week for the first 30 days?
| Week | Focus | What to do |
|---|---|---|
| 1 | Income and paperwork | Get the layoff terms in writing. File for unemployment. Write down your health coverage deadlines. Build a bare-bones budget. Save personal files and contacts. |
| 2 | Coverage, severance and references | Choose health coverage. Read the severance agreement and ask questions. Ask for references. Update your resume and LinkedIn profile. |
| 3 | Restart | Decide your target roles and employers. Tell your network. Set up job alerts and send your first applications. |
| 4 | Routine | Settle into a weekly schedule. Track every application. Practice your layoff explanation and interview answers. Review the budget. |
Take a few days at the start if you need them. The deadlines below allow it.
02
How do you file for unemployment after a layoff?
Unemployment insurance is a joint state-federal program that each state runs. It pays benefits to people who are unemployed through no fault of their own and who meet their state’s other requirements.
- Contact your state unemployment insurance agency as soon as you are unemployed. You generally file with the state where you worked.
- Have your work history ready. The Department of Labor says you will be asked for information such as the addresses and dates of your former employment.
- Expect a wait. It generally takes two to three weeks to receive the first payment, and some states have a one-week waiting period.
- Keep claiming. You must file weekly or biweekly claims and report any earnings, job offers or refusals of work.
- Plan for the limits. Benefits are based on a percentage of your recent earnings and can be paid for a maximum of 26 weeks in most states. They are subject to federal income tax, and you can choose to have tax withheld.
- Appeal if you are denied. You have the right to, within a deadline your state sets.
Report any severance or vacation payout when you file, and ask your state agency how it affects your claim.
03
What are your health coverage options after a layoff?
Find out the exact date your employer coverage ends, then compare these options before any deadline passes.
| Option | What it is | Deadline and cost |
|---|---|---|
| COBRA | Staying on your former employer’s group plan. Federal COBRA covers plans from private employers with 20 or more employees, and many states have similar laws for smaller ones | At least 60 days to decide. Coverage lasts up to 18 months after a job loss. You pay the full cost, up to 102% of the plan’s total |
| Marketplace plan | Individual coverage through HealthCare.gov or your state’s exchange | Choose a plan within 60 days of losing job-based coverage. Savings depend on household size and estimated income, not employment status |
| A spouse’s employer plan | Special enrollment in another group plan | Usually only 30 days from the day you lose coverage to ask |
| Medicaid or CHIP | Free or low-cost public coverage, depending on income | The Marketplace application checks eligibility |
Plans must give you at least 45 days after you elect COBRA to make the first payment. If you elect COBRA and then end it early, you generally cannot enroll in Marketplace coverage until the next open enrollment, so make the comparison first. Some employers pay part or all of the COBRA cost as part of severance, so ask.
04
What should you settle with your former employer?
Ask HR for these in writing in week one:
- your official last day and the date of your final paycheck
- whether unused vacation will be paid out
- the severance offer, what it requires you to sign, and the deadline for signing
- the date your benefits end, and when COBRA paperwork will arrive
- what happens to your retirement account
- how the company will describe your departure and confirm your employment dates
Severance often comes with a release of legal claims, so read it before you sign. Severance negotiation explains what can be discussed.
If you were part of a large layoff, one federal rule may apply. The WARN Act requires employers with 100 or more employees to give at least 60 calendar days’ written notice of a plant closing or mass layoff affecting 50 or more employees at a single site, with exceptions for unforeseeable business circumstances, faltering companies and natural disasters. If you got less, ask an employment lawyer what that means for you.
Then ask for references while your work is fresh. A former manager and two colleagues who saw your work closely is a good set. Job references covers how to ask and what to give them.
Subject: Would you be a reference for me? Hi [Name], I enjoyed working with you on [project or team], and I'm starting my search for [type of role]. Would you be willing to act as a reference? If so, I'll send you my updated resume and a note on the roles I'm targeting, and I'll let you know before anyone contacts you. The best number and email for you would be helpful. Thank you. [Your name] [Personal email] | [Phone]
05
How do you restart your job search?
- Write your one-sentence explanation. State what happened, in business terms, and move on to what you want next. How to explain a layoff has wording for interviews, resumes and LinkedIn.
- Update your resume with an end date and the results from your last role while you can still recall the numbers.
- Pick a target. Two or three job titles, the industries you know, a salary floor and a list of employers you would like to work for.
- Tell people. Most of your network cannot help until they know you are looking and what for. Networking for a job covers who to contact first.
- Set a weekly routine with fixed blocks for applications, outreach and interview practice. A job search plan keeps the effort even.
- Use public services. The Department of Labor’s Rapid Response services for laid-off workers include career counseling, job search assistance, and resume and interview workshops. American Job Centers offer similar help to anyone. Call 1-877-872-5627 (1-877-US-2JOBS) to find local services.
Hi [Name], Some news: my role at [Company] was eliminated in [month] when [the team was cut / the office closed / the company restructured]. I'm looking for [job title] roles in [industry or location], ideally at companies like [two or three examples]. Over the last [number] years I've focused on [your specialty in a few words]. If you know someone I should talk to, or hear of an opening, I'd be grateful for an introduction. And I'd enjoy catching up either way. [Your name]
FAQ
Frequently asked questions
Should you file for unemployment if you received severance?
Yes, contact your state agency anyway. The US Department of Labor says to get in touch with your state’s unemployment insurance agency as soon as possible after becoming unemployed. Eligibility is decided under state law, so report the severance when you file and ask how it affects the timing or amount of your benefits.
How long do you have to sign up for COBRA?
At least 60 days. The election period runs from the later of the date you receive the election notice and the date you would otherwise lose coverage. After you elect, the plan must give you at least 45 days to make the first payment. Whether coverage is retroactive depends on the plan’s rules, so read the notice.
Is COBRA or a Marketplace plan better after a layoff?
It depends on cost and continuity. COBRA keeps your existing plan and doctors, but you pay up to 102% of the full premium. A Marketplace plan may cost less because savings are based on your household size and estimated income. Compare both within the first 60 days, because ending COBRA early generally means waiting for open enrollment.
How soon should you start applying after a layoff?
Within two or three weeks for most people. Use the first week for unemployment, health coverage and paperwork, and the second for your resume, references and explanation. Starting too fast means applying with an out-of-date resume. Waiting until severance runs out means searching under pressure.
What help is available to laid-off workers?
In the United States, the Department of Labor’s Rapid Response services offer laid-off workers career counseling, job search assistance, resume and interview workshops and training opportunities. American Job Centers provide help from resume preparation to job placement for anyone. Call 1-877-872-5627 to find local services. State employment services also offer re-employment help free of charge.
Sources
- US Department of Labor: State Unemployment Insurance Benefits: eligibility, where to file, waiting times, continued claims, the 26-week maximum, taxes and free re-employment services.
- US Department of Labor: A Worker’s Guide to Health Benefits Under COBRA: who COBRA covers, election and payment deadlines, cost and the alternatives.
- HealthCare.gov: Health coverage options if you’re unemployed: Marketplace, Medicaid and CHIP coverage and how savings are calculated.
- US Department of Labor: Rapid Response Services for Laid-Off Workers: services for laid-off workers, American Job Centers and the helpline.
- US Department of Labor: Plant Closings and Layoffs: the WARN Act’s notice requirement and exceptions.
Published by Jobbie and last updated on October 6, 2026. This guide is general information for job seekers, not legal, tax or financial advice. Spotted something wrong? Tell us.