Workforce Solutions

Effective Strategies for Overcoming Unemployment Challenges

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How to tackle unemployment positively?

Unemployment is when a competent and willing professional cannot find a suitable job, and the person is labelled as unemployed. A job often becomes part of an individual's identity and self-worth. Being unemployed can be highly undesirable. In our society, unemployment is culturally stigmatized, and it also comes with its own set of financial, physical, mental, and emotional challenges.

The COVID-19 pandemic took a heavy toll on the global economy, and even though the situation is recovering, unemployment remains high. The average unemployment rate in the USA is 3.6% as of April 2022. Thus, if you are stuck in this situation, you are not alone. Thousands of others are struggling with unemployment due to various reasons. But this struggle doesn't have to continue endlessly and need not end in finding a job you hate!

In this article, I will talk about the different types of unemployment, what causes it, and how you can tackle it positively.

Types And Causes of Unemployment

Let me first explain what unemployment is and how it is categorized. Unemployment may be voluntary or involuntary and can be categorized into four main types:

  1. Frictional: Frictional unemployment is not very problematic and is caused when a person leaves their job to find better opportunities elsewhere.
  2. Structural: Structural unemployment happens when a major disruptive technology changes the workplace. Certain skills become redundant, and people who can no longer bring value to the company are let go.
  3. Cyclical: Cyclical unemployment is caused by economic downturns and recessions. In such conditions, the supply of trained professionals is much higher than the demand in the industry.
  4. Institutional: Institutional unemployment can happen due to significant permanent changes in the labor market and economies, such as unionization or a rise in minimum wages.

What To Do When You Are Unemployed?

Whether you are a fresh graduate looking for your first job or a young professional hoping to restart your career, here's what I did to end my unemployment and recommend you to do as well.

Rest and recover

I found the journey from unemployment to satisfactory employment long and tiring. And I felt that to give my mental and physical best. I couldn't proceed with fatigue and burnout from my previous employment. Thus, before starting your employment search, give yourself some much-deserved rest. Recover your strength and prioritize your mental health to commit to finding the right employment opportunities fully.

Assess the market situation

I also realized that the market situation doesn't always remain the same. The circumstances under which you left your last job or failed to find suitable employment may change every few months. Therefore, instead of despairing, assess the market and keep track of developments in your preferred sectors. Several macro and micro-changes can favor you and make your next move clearer.

Assess your skills 

In addition to assessing the market, I also evaluated my skills and competencies to better understand my prospects. Technological advancements and process innovations often make some skills obsolete or irrelevant. At the same time, new skills gain popularity and are high in demand. If you find that your skillset is outdated, prepare to upskill and retrain yourself while unemployed.

Budget and plan

Next, I tried to figure out how long it would take to find a desirable job. I needed to budget my resources and use finances sparingly for this unemployment period. So, I chalked up a financial plan for the months ahead when there is no inflow of finances. I also kept aside funds for any courses or training programs relevant to my job search. When you don't have to worry about running out of money, you will become genuinely productive, and that's why you need to budget for success!

Start reskilling and upskilling

Then, I started reskilling and upskilling to become a sought-after professional in the job market. You may need to work on soft skills like communication, presentation, critical thinking, body language, etc., or hard skills like software development, data analytics, project management, etc. 

I researched and found affordable online training programs, skill-focused boot camps, and professional courses to help develop my skills. This could be a good starting point for you too.

Apply to relevant opportunities

While developing my skills, I parallelly kept applying to relevant employment opportunities. Some employers give more importance to skills than to certificates or degrees. If you can clear their recruitment process by showcasing relevant skills, you can get out of unemployment faster. That's the trick that worked for me!

Therefore, stay on the lookout for viable jobs and create applicant profiles on important job sites. Simultaneously, track your dream companies' career pages and social media accounts and apply directly to any jobs that may be a good fit for you. Upon completion, you may also select training programs or boot camps that offer assured employment opportunities.

After all, the end goal is getting out of unemployment, but on your terms!

To read more interesting content and figure out your next career move, visit the website.

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Visit our website today, fill out the form, and our experts will help you make a wise decision for your career.

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