Could It Pay to Say "I'm Unemployed"?

After all the talk that employers prefer passive (employed) job seekers to active (unemployed) job seekers, there may be a new twist: Employers get a tax advantage for hiring the unemployed.

According to the Reuters article, Obama Signs $17.6 Billion Jobs Bill:

The legislation would exempt businesses from paying the 6.2 percent payroll tax on new employees who had previously been out of work. Employers would also get a $1,000 tax credit if those workers were still on the job a year later.

Here's how my tax professional explained it in his recent newsletter (reprinted here with his permission):

It's part of the HIRE Act, passed March 18. Employers normally "match" the 6.2% FICA tax on the first $106,800 paid to each employee. This year, employers who hire anyone who certifies he/she was not employed more than 40 hours in the 60-day period before hiring get a tax "holiday." Key rules: employee must be hired after February 3, can't replace another employee unless former left voluntarily or for cause, applies to wages between March 19, 2010 and end of year. IRS issued a revised Form W-11 for the hire to certify the unemployment, and is revising Form 941 to allow for the credit. In 2011 the law expires, but a credit of up to $1,000 can be earned for any qualified employee who is retained for at least 52 weeks.

Does this mean the active job seeker now has a leg up on the passive job seeker? Maybe... if the employer knows about and values this tax advantage.

So here's the big question: Which employers want unemployed job seekers and the corresponding tax advantage? I did some research, hoping to find a list of such employers, but no luck.

Then, I remembered stories about creative job search strategies that had actually worked, like the sandwich board resume, a clever YouTube resume, and the $6 Google ad campaign. Does the Jobs Bill open the door for another unconventional approach... like marketing your unemployment status as a tax benefit to a potential employer?

In other words, when approaching the right company, sell yourself as the ideal unemployed job candidate who's going to save the employer tax dollars. You could actually use the dreaded "unemployed" (or "available") word in your cover letter or email.

Now, this goes against the grain of most job search advice -- including mine. But it's creative! And it could possibly work -- at least the Obama Administration is hoping it will.

When to Say You're Unemployed

It might pay to state that you're unemployed if you:

1. Try to get a job at a new or growing company. Is there a new plant or branch operation that's looking for new employees? Such a company might be open to hiring quality unemployed job seekers in order to get on board with the Jobs Bill tax incentives.
2. Apply for a job in a struggling company. What companies are not thriving, and therefore might be looking for every way to save a dime -- even from Uncle Sam? Working for a struggling company probably doesn't fit with your image of job security, but it might be a place to park yourself for a spell.
3. Find a job with a tax-savvy company. What companies are financially smart enough to understand the value of a good unemployed job candidate and the tax savings he or she brings along with the deal? Maybe a company in or related to financial services?
4. Seek employment with a small business. What small business is open to your suggestion that they save on taxes by hiring you? This might mean taking the bold step of educating the employer -- very concisely -- in your cover letter.

If you take an "I'm unemployed" job search approach, I suggest you look busy on your resume by listing a current activity (professional development, volunteerism, or personal project) that's relevant to your job objective, even if you're not getting paid for it. You want the employer to see that you're relevant and involved in your profession, no matter what your employment status.

The Jobs Bill will expire at the end of this year. The clock is ticking! How can you take advantage of it in your job search? Let's brainstorm here in the Job Lounge and add ideas to this list.

For another idea for solving your unemployment, check out Barbara Safani's article, Unemployed Need Not Apply. Barbara suggests networking in your community where employers won't be put off by your unemployed status because they know and trust you.

And, for a lively discussion on whether it's fair for employers to prefer passive job seekers over active job seekers, read the Why isn't this illegal? discussion in the Job-Hunt Help Group on LinkedIn. You must be a member to access the group, but it's free to join.

The Pink Slip Blues

If you've recently been slapped with a pink slip, what's your first step to recovery? It may depend on how urgently you need a new job. If you're strapped for cash, you'll have to start looking for new work right away. If you have money stowed away (enough to cover at least eight month's worth of living expenses), consider taking some time off to work through the shock and awe of having lost your job.

Whether you jump into job-hunt mode right away or take a break, you need to deal with the emotional side of having had your job terminated.

You Got Fired
If you were fired from your job, come to grips with why you were asked to leave and figure out how you can avoid a repeat performance on your next job. These questions may help:

• Was the job description above or below your qualifications? Being over- or under-qualified for a job can cause poor performance. Recognizing this may help you find a more suitable job this time around.
• Was the company culture not a good fit for you? It's hard to excel if you're in an environment that doesn't match your personality (for example, formal or casual) or lifestyle (for example, political or religious). Identify what company culture brings out the best in you, and find employers with that mindset.
• Was there someone or something that caused your departure (for example, a disagreeable boss or unfair employment practice)? What role, if any, did you play in the situation? Get advice from a job counselor or trusted friend to understand how to prevent such a thing from happening again.

Understanding and accepting your job termination will help you move on to a new job – one that you'll enjoy and thrive at. It will also help you talk more easily about your last job in a job interview. (Yes, it'll probably come up in a job interview, so it's best to be prepared.)

The Big Layoff
If you got laid off from your job, research what caused the layoff so you can speak knowledgably about it to recruiters and hiring managers. Here are some things that might be helpful to know:

• How many employees were laid off
• How many rounds of layoffs there have been in the last five years
• The reason the company gave you, the public, and its shareholders for the layoffs
• Whether the company is closing completely or might get turned around
• Why you think you were chosen to be laid off. This is a hard one, but once you understand this to the best of your ability, you'll likely see it wasn't your fault. This realization will help you move on with greater self-esteem.

If you're really down and out, you may need to get professional help. Consider asking a therapist, career counselor, or religious leader for a few sessions to discuss your situation. Also, try to find a support group (in-person or online) where you can work through the grief of your job loss with others who are in the same boat.

For more on having been laid off or fired from your job, read these posts:

Explaining a Job Termination
Fired But Don’t Know Why
Job Search Resilience
Gaps and Layoffs and Resumes, Oh My!

How Many Layoffs Is Too Many?

I asked recruiters and human resources professionals on LinkedIn the following:

Question

Recruiters and hiring managers, when considering a job seeker for a job opening, how many layoffs in a two-year span are acceptable? How many in a five-year span? At what point does it look like it might be the job seeker's fault, and, therefore, you don't want to take the risk of hiring him?

There are several answers worth reading. I'm posting here the answer I thought was most honest.

Answer
by Stu Needels, Regional Sales Practice Director, Mindcircuit

Honestly, recruiters and hiring managers are looking to mitigate risk. Generally, the top 25% of a company's workforce rarely get laid off. It is this group of top performers that firms want to pay a recruiter to find them. There are exceptions to every rule and today there are more downsizings than ever.

Having said that, two layoffs inside 3 years would typically be a red flag to an agency recruiter. Perhaps a corporate recruiter could afford to be more forgiving for difficult to find skills.

This was not the answer I was hoping for, nor am I certain it's the right answer. I tend to think each recruiter or manager has his own technique or formula for sizing up an applicant's work history, as voiced by the other responders to the question.

What's your view on this, as a manager, recruiter, or job seeker?

How to Avoid a Layoff

This video by Vault.com is a good overview of how people (in New York City) are responding to our current economic down-turn. Here's a point I especially liked:

If you think your company might be heading for a round of lay-offs, sit down with your manager and ask what project is most important to the company right now. Then try to get involved in that project as your primary responsibility. If you're working on something that's of secondary importance to the survival of the company, you're more likely to get laid off. If you're working on a primary project, you're less apt to be sent packing.

Laid Off... What Now?

If you've been laid off recently, this might be an opportunity to make a change in your career path. Instead of launching immediately into a job search for the same type of work you just left, take time to figure out whether or not this line of work is still what you want, and if it's a realistic way of making a living in today's economy. In other words, take a time-out for career management.



One approach to career management is to think of yourself as the CEO of your company -- your career. Look to your advisers (your friends and family members) for their opinions about what career choices might be good for you. Hire a consultant -- a career counselor. Gather information by searching online and conducting informational interviews with members of your professional and personal network.

Lay all your options on the table, including the possibility of staying in your current profession, industry, and location. Then you can make a decision and a "business plan" for how you'll go about getting that new job.

Possible Layoff in the Works

Question
I transferred to another state and started working for a department whose management announced they are investing huge amounts of capital for new technology after a 15-year lapse. The new technology was also brought into two other company operations similar to where I work. The other locations eliminated a shift of workers.

I need to know how I can find out if my employer plans a layoff. I understand there are state agencies the corporation has to file information with. Can you tell me if this agency information is public knowledge? I need to have this to plan my future.

The decision to purchase this advanced technology was made last week. I may only have several months to prepare. Any help is appreciated

Answer
by Richard Yadon, CPC, President/CEO

I don't think there is a public site that projects who is being laid off in the next several months. If such information exists, I'm sure it would not be made public. There may be some budget information filed that indicates a reduction in payroll expenses, but I would be very surprised if it named names.

It is always good practice to be prepared for a layoff. Everyone needs to have a thoughtful career plan. Unless you are actively managing your career you can always be victim to this kind of event.

The first way to prepare is to think about the financial consequences of a layoff. By having an “emergency fund” that’s equal to three to six months of living expenses, you will most likely weather a layoff without a financial setback. This assumes you are actively looking for a new job when the layoff happens. If you currently have less than three months living expenses set aside, then you need to be very proactive now.

Some proactive steps you can take today are:

1. Update your resume.
2. Start networking with people who can either hire you or introduce you to people who can hire you.
3. Start building a database of potential employers (a simple spreadsheet is fine for this).
4. Monitor the job boards that specialize in jobs for people with your background and skills.
5. Connect with a recruiter who specializes in your industry.

Don't wait until you are laid off to begin these five steps. Start now. Even if you don’t get laid off, you might come across a job opportunity that’s even better than what you have now!

Gaps and Layoffs and Resumes, Oh My!

Question
I have been looking over The Complete Idiot’s Guide to the Perfect Resume by Susan Ireland and think either the achievement or functional resume might be best for me.

I have job gaps. Some from going back to college, one from taking a year to get the ideal job (internet consultant during the internet bubble burst), Continue reading...