Articles by Shreya Biswas

Technology

Don’t go broke! What to do right now if you have been furloughed or laid off

APGovernment shutdown 2025 furloughed workers Government shutdown 2025 furloughed workers: The current government shutdown, which started on October 1, has put numerous federal workers out of their jobs, but not necessarily out of employment, as over 700,000 federal employees have been furloughed, i.e., they've been put on temporary, unpaid leave, because of a lack of government funding, as per a report.But furloughs aren't only a threat to government employees. Private sector companies may also temporarily furlough workers because of economic downturns, seasonal conditions, or budget issues. For those who are affected, the sudden absence of pay can bring on serious financial hardship.What Does It Mean to Be FurloughedA furlough is a temporary unpaid leave during which the employer wants to recall employees once conditions are better. Employees remain technically employed and sometimes retain workplace benefits such as health coverage, life insurance, or disability, although employees might still be required to contribute their share.A layoff, on the other hand, suspends employment and benefits, and employees who are laid off can be entitled to severance pay, COBRA coverage of health, and unemployment compensation. Furloughed employees typically have the assurance of coming back to work, but the situation might potentially turn into a layoff if the company needs it, as per a Yahoo Finance report.ALSO READ: After Amazon, now GM joins the layoff wave — thousands of jobs lost across key US states, check who's impactedLive EventsAre Furloughed Workers Eligible for Unemployment BenefitsHowever, furloughed employees are typically entitled to unemployment benefits. Federal employees are eligible for Unemployment Compensation for Federal Employees (UCFE), which is governed by state regulations, as per the Yahoo Finance report. Because benefits may take weeks to begin, it is important to file a claim as soon as it is possible. After it has been approved, continued claims need documentation that you continue to be furloughed and not paid. Most states offer up to 26 weeks of benefits, although the maximum amount differs.How to Manage Your Money During a FurloughCount your expenses and cut back on discretionary expenditures to make your income last. Draw on your emergency fund as a last resort, but attempt to preserve it by reducing day-to-day costs first, as per the Yahoo Finance report.If you’re paying off credit cards, student loans, or auto loans, contact your creditors to explain your situation, as per the Yahoo Finance report. Many lenders offer hardship programs that may include deferred payments, lowered interest rates, or waived late fees, and at the very least, continue making minimum payments to protect your credit, as per the report.Even on a temporary basis, a side job can add a bit of money during a furlough and remember that any earnings might cut into unemployment benefits if they reach some levels, but they can also cushion necessities, as per the Yahoo Finance report.ALSO READ: Hurricane Melissa devastates Jamaica - island has no power, communication network crippled and lives shatteredWhat Furloughed and Laid-Off Workers Need to KnowFurloughed federal workers and those working without pay, including coast guardsmen and park rangers, received smaller partial paychecks in early October and were to miss their first complete paychecks on October 24. Service members on active duty received pay October 15 but might miss their subsequent paycheck on October 31.The Department of Agriculture has also said that federal food assistance under SNAP will not be made available on November 1 as a result of the shutdown. This ongoing shutdown is now the second-longest in US history, with some analysts expecting it to last through to November. Calls for action from lawmakers are increasing as open enrollment for the Affordable Care Act marketplace starts on November 1 and Thanksgiving travel becomes an issue shortly afterwards, as per the Yahoo Finance report.FAQsWill I lose my health insurance during a furlough?Not necessarily. Many employers allow furloughed workers to keep benefits, but you may need to pay your share of the costs.Can federal workers get unemployment benefits?Yes. They may qualify under Unemployment Compensation for Federal Employees (UCFE).Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onGovernment shutdown 2025 furloughed workersgovernment shutdown democratsunemployment benefits for furloughed employeesgovernment shutdown news todaySNAP benefits suspension 2025federal workers missing paychecksfurlough vs layoff difference explainedgovernment shutdown furlough updatehow long will the government shutdown lastfurlough financial survival guide (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onGovernment shutdown 2025 furloughed workersgovernment shutdown democratsunemployment benefits for furloughed employeesgovernment shutdown news todaySNAP benefits suspension 2025federal workers missing paychecksfurlough vs layoff difference explainedgovernment shutdown furlough updatehow long will the government shutdown lastfurlough financial survival guide(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless