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title:The first step workers should take after a layoff, as job losses soar
source:CNBC
content:Key Points
* U.S. employers have cut more than 1.1 million jobs through November of this year, consulting firm Challenger, Gray & Christmas reported Thursday. That number is the highest level since 2020, during the Covid pandemic.
* There is one thing to do quickly after a job loss, experts say: Apply for unemployment.
* It can take weeks for the benefits to reach you, and minimizing that wait can help you shore up your financial situation.
Thana Prasongsin | Moment | Getty Images
This year has been [the worst for layoffs](https://www.cnbc.com/2025/12/04/layoff-announcements-this-year-top-1point1-million-the-most-since-2020-when-pandemic-hit-challenger-says.html) since the start of the pandemic, a new report shows — and those newly unemployed workers are [entering a tough job market](https://www.cnbc.com/2025/12/03/adp-jobs-report-november-2025-private-payrolls-unexpectedly-fell-by-32000-.html).
While a job loss can leave workers scrambling to keep up with bills like their [mortgage](https://www.cnbc.com/2020/05/07/4-million-homeowners-in-cares-act-mortgage-forbearance-program.html) or [children's college tuition](https://www.cnbc.com/2025/05/14/how-to-save-for-college-in-a-volatile-market.html), there is one thing it's important to do before you [reassess your expenses](https://www.cnbc.com/2025/09/29/government-shutdown-financial-prep-for-federal-workers.html) or [talk to lenders](https://www.cnbc.com/2025/11/01/layoffs-financial-security-tips.html), experts say: Apply for [unemployment benefits](https://www.dol.gov/general/topic/unemployment-insurance).
It can take weeks for the benefits to reach you, and minimizing that wait can help you shore up your financial situation.
"After a layoff, workers should apply for unemployment benefits immediately to help cover essential expenses and preserve their savings for true emergencies," said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York. Boneparth is also a member of the [CNBC Financial Advisor Council](https://www.cnbc.com/advisor-council/).
More from Financial Advisor Playbook:
-------------------------------------
Here's a look at other stories affecting the financial advisor business.
* [The first step workers should take after a layoff, as job losses soar](https://www.cnbc.com/2025/12/04/unemployment-claims-after-a-layoff.html)
* [Politics is now the No. 1 money worry, financial planners say](https://www.cnbc.com/2025/12/04/politics-is-now-the-no-1-money-worry-financial-planners-say.html)
* [How to maximize Trump's bigger SALT deduction limit for 2025](https://www.cnbc.com/2025/12/02/trump-bigger-salt-deduction-2025.html)
* [Use FSA money before it expires. Many 'aren't aware that they have a deadline': Expert](https://www.cnbc.com/2025/12/01/fsa-balance-deadline.html)
* [How Trump's 'big beautiful bill' could affect your Giving Tuesday tax break](https://www.cnbc.com/2025/11/29/trump-big-beautiful-bill-giving-tuesday-tax-break.html)
* [Cash can feel safe, 'but it doesn't grow your wealth,' portfolio strategist says](https://www.cnbc.com/2025/11/24/cash-can-feel-safe-but-it-doesnt-grow-your-wealth-portfolio-strategist-says.html)
* [Some retirees face a ‘survivor’s penalty’ after a spouse dies — here’s how to avoid it](https://www.cnbc.com/2025/11/18/survivors-penalty-after-a-spouse-dies-.html)
* [After a layoff, don't forget about your 401(k) — it's 'one of your biggest assets,' CFP says](https://www.cnbc.com/2025/11/14/401k-layoff.html)
* [How to have tricky money talks as a couple: 'Money Together' authors](https://www.cnbc.com/2025/11/08/how-to-talk-about-money-as-a-couple.html)
* [This investing move is the 'holy grail of retirement planning,' advisor says](https://www.cnbc.com/2025/10/28/investing-your-health-savings-account-balance.html)
U.S. employers [have cut](https://www.challengergray.com/blog/challenger-report-71321-job-cuts-on-restructurings-closings-economy/) 1.17 million jobs through November of this year, with corporate restructuring, artificial intelligence and tariffs to blame, consulting firm Challenger, Gray & Christmas [reported](https://www.cnbc.com/2025/12/04/layoff-announcements-this-year-top-1point1-million-the-most-since-2020-when-pandemic-hit-challenger-says.html) Thursday. That number is the highest level since 2020, during the Covid pandemic.
Payroll processing firm ADP also found this week that the labor market slowdown intensified in November, with private companies cutting [32,000 workers](https://www.cnbc.com/2025/12/03/adp-jobs-report-november-2025-private-payrolls-unexpectedly-fell-by-32000-.html).
Here's what workers need to know about unemployment benefits.
Documents you'll need to file for unemployment
----------------------------------------------
Before filing for unemployment benefits, you'll want to gather the following information, said Michele Evermore, senior fellow at the National Academy of Social Insurance:
* Details of your pay over the last 18 months
* Names of previous employers during that period and their addresses
* Your Social Security number,
* Your state-issued identification, such as a driver's license
* Any documentation from your last employer, including information related to your termination
Apply in the state where you worked
-----------------------------------
If you live in one state and work in another, you'll want to apply for the aid [in the state where you worked](https://www.dol.gov/general/topic/unemployment-insurance#:~:text=To%20receive%20unemployment%20insurance%20benefits,receive%20your%20first%20benefit%20check.), experts say.
On a DOL-sponsored website, you can find [the contact information for state unemployment agencies](https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemployment-benefits.aspx).
State agencies should pay benefits within three weeks of your application, but delays have become more common since the pandemic, Evermore said.
"It's probably going to get worse as layoffs increase," she added.
Maximum benefits vary by state
------------------------------
Maximum unemployment benefit amounts vary by state. For example, California's maximum weekly benefit is [$450](https://edd.ca.gov/en/unemployment/UI-Calculator/); in Florida, the cap is [$275](https://floridajobs.org/Reemployment-Assistance-Service-Center/reemployment-assistance/claimants/claimant-faqs-(new)), Evermore said. Recently, the maximum weekly benefit in New York rose to [$869](https://dol.ny.gov/mbr).
Standard benefit timeline is 26 weeks, but not always
-----------------------------------------------------
In most states, claimants can get unemployment benefits for 26 weeks, Evermore said — although it's less in some states. In Florida, for example, the benefits last for just [12 weeks](https://www.cbpp.org/research/economy/how-many-weeks-of-unemployment-compensation-are-available).
Unemployment benefits are subject to taxes
------------------------------------------
Unemployment benefits are subject to federal taxes, and many states tax them, too. When you start to receive the payments, your state will typically give you the option to have taxes withheld, Evermore said.
It's a good idea to take that option to avoid a potentially hefty tax bill later, she said.
[](https://www.cnbc.com/2025/12/04/politics-is-now-the-no-1-money-worry-financial-planners-say.html)
[Politics is now Americans' No. 1 money worry, financial planners say](https://www.cnbc.com/2025/12/04/politics-is-now-the-no-1-money-worry-financial-planners-say.html)
[Jessica Dickler](https://www.cnbc.com/jessica-dickler/)22 min ago
[](https://www.cnbc.com/2025/12/02/trump-bigger-salt-deduction-2025.html)
[How to maximize the bigger SALT deduction for 2025 under Trump’s ‘big beautiful bill’](https://www.cnbc.com/2025/12/02/trump-bigger-salt-deduction-2025.html)
[Kate Dore, CFP®, EA](https://www.cnbc.com/kate-dore/)
[](https://www.cnbc.com/2025/12/01/fsa-balance-deadline.html)
[Spend your FSA balance before it expires: Many workers 'aren't aware that they have a deadline,' expert says](https://www.cnbc.com/2025/12/01/fsa-balance-deadline.html)
[Sarah O'Brien](https://www.cnbc.com/sarah-obrien/)
[Read More](https://www.cnbc.com/fa-playbook/ "Read More")
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