MONEY COMMENT
What To Do When You Lose Your Job

By Cliff D'Arcy
January 13, 2004

Fears about the fragile UK economy have unsettled many workers, especially those working for manufacturing firms. According to new research from industrial recruitment agency Pertemps, the thing that blue-collar workers fear the most is redundancy.

The company quizzed over five hundred workers about their workplace worries, and found that more than one in three were worried about redundancy. This was by far their biggest concern, ahead of dismissal, pay cuts and freezes, and having to work longer hours.

Predictably, the survey also revealed a huge North-South divide: four out of five blue-collar workers in Newcastle felt their jobs were at risk, compared to just 1 in 25 workers in Exeter. Cambridge - known for its high-tech businesses - was another hotspot, with two in three workers worried about being laid off.

What's more, almost two out of five workers (38%) said they would have money worries if they were made redundant, and two out of seven (28%) felt they would struggle to find another job. So, if you think that your job is under threat, start your action plan today:

• Start spending less than you earn: learn to budget and get help and advice from the Fool community at our Living Below Your Means discussion board.
• If you have non-mortgage debts, pay them off as quickly as you can (unless you have credit card repayment protection or personal loan protection insurance and are fairly sure that your claim(s) would be successful).
• If you do lose your job, make sure you claim on all your payment protection insurance policies, especially if you've protected your mortgage. 
• Build up a cash emergency fund to help meet your expenses when your income dries up. Although a severance payment may provide you with a cash cushion, don't expect a vast pay-off if your company is struggling.
• Check out our Dealing With Redundancy and Dealing With Debt boards.
• Think about alternatives to full-time work, such as part-time work, re-training for a new career, going back into education, setting up your own business, starting a family, or opting to retire early (if the financial terms are generous).
• Stay positive! Read this great article on the Guardian website.

Finally, remember that while redundancy may end one chapter of your career, it also starts another. For example, I'd had enough after fifteen years on autopilot in banking and insurance, volunteered to leave, and started out as a writer. This eventually led me to my great job at the Fool, and here I am over a year later!

More: Dealing With Unemployment | Get Out of Debt.