How to survive unemployment

UK unemployment levels are still rising. Find out what to do when work dries up and how to come out the other side stronger!

Recent figures have revealed that UK unemployment levels continue to be on the up. In fact, in the three months to the end of November, UK unemployment rose by 49,000 to almost 2.5 million, according to the Office for National Statistics (ONS). The UK unemployment rate now stands at 7.9%.

But it's the young who have been hit hardest. One in five 16 to 24-year-olds are now out of work, taking the total to 951,000 without jobs - this is the highest figure since records began in 1992.

So if you're one of the many who have recently been made redundant, or perhaps you're self-employed and struggling to find work, here, I'm going to focus on the things you can do to cope - and to strengthen your position - until things improve. Fortunately, there are lots of constructive steps you can take.

Reassess your financial priorities

Firstly, you need to take a good long look at your budget. For example, if you have a standing order to your savings account, you may need to cancel this and use the cash for everyday expenses, instead. Or perhaps you're no longer able to overpay your credit card each month.

Of course, any money you do have coming in needs to be spent wisely. Read Slash your living costs in seven days for some great tips.  

Focus on the skills that matter

If you're unemployed, you're going to have to fight tooth and nail to get ahead of other candidates in your field and nail that next job.

And if you're self-employed, you'll know that it's a constant battle to bag the next commission before some other rotter gets it.

Either way, you need to focus on the skills that will make you stand out from everyone else. Salsa dancing is a lovely hobby to have (and it will get you out of the house) but it won't get you that job as an IT engineer.

Check job adverts in your sector and work out what skills, qualifications or experience they all seem to be asking for.

And do some Machiavellian networking: Talk to other people in your profession and work out which skills are in short supply and high demand. Then focus on getting your head round them.

In a nutshell, make the most of all that free time you suddenly have! In The brighter side to redundancy? we highlight lots of affordable courses and training programmes for you to consider.

Overhaul your CV

Personally, I hate writing my own CV (particularly that 'about me' paragraph) because I'm very bad at selling myself and always come across as a bit of a plonker.

However, it's really important you give your CV a full MOT and polish it until it shines. A sparkling CV and cover letter could mean the difference between getting a job next week, and being unemployed for months or even years.

Here are a set of CV tips that should point you in the right direction.

Strengthen your brand

At the risk of sounding like Stuart Baggs from The Apprentice, you need to find ways to strengthen the brand 'You'. This is particularly important if you're self-employed, because very often future commissions rely on your portfolio and your reputation as much as on your CV.

So, find ways to get your name and expertise into the public domain. For example:

Build a website: Register an internet domain under your own name and build yourself a simple website showcasing your skills and experience. This doesn't have to cost much, and you don't have to be a tech whizz to get things off the ground.

There are various web hosts and site-building programmes that you can use to get the whole thing going for well under £50. Your main outlay will be the time you spend getting it right.

Get some business cards printed. Make yours stand out by choosing an unusual colour, material or shape. I was once handed a card made from clear plastic, with a bright pink swoosh design across it. If I remember that, the chances are potential employers will too!

Tailor your stationery: Get correspondence paper that's tailored to your needs. A stylish, well-placed design that's unique to you will look professional and sophisticated.

If you're self-employed - or run a small business that's hanging on by its fingernails - read The small business survival guide for more tips on how to cope.

Related how-to guide

Get a promotion

If you want to get a promotion at work, these tips should set you on the right path.

See the guide

Get into a routine

Getting work in an unstable economy can be a hugely dispiriting business. You may end up feeling as if your fabulous CVs and carefully-worded cover letters are zooming off into a black bottomless pit.

Ultimately, it's a matter of staying focused and just playing the numbers game: Eventually, things will take a turn for the better.

Personally, I find routine very helpful in keeping me motivated when I'm hunting for work. I make every possible online employment source a 'favourite' on my computer and save then in a huge long list.

Then, first thing every morning (usually while eating my porridge) I go through each one searching for any opportunities and applying for them.

Job hunting methodically at the same time each day - giving myself plenty of time - means I'm less likely to dabble aimlessly, take a vague scattergun approach and give up halfway through. Of course, it's all about what works for you.

Keep your spirits up

If you feel yourself sinking into despair/apathy/complete inactivity, you need to drag yourself out of it as soon as possible. That could just mean getting out of the house, even if you don't feel like it.

Or, to help motivate your job hunt, you could set yourself inexpensive rewards for getting things done. So three solid job applications = ice cream and a DVD - or whatever.

Finally, try to keep yourself groomed and in reasonable physical shape. When you're out of work, it's all too easy to live in your pyjamas (I'm speaking from experience here).

However, when you do finally get that job interview, you won't give your best performance with sticky-uppy hair and a permanent sniffle.

Get help from lovemoney.com

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If you need help with a specific issue, why not see if your fellow lovemoney.com users can help by asking a question in our Q&A section?

This is a classic article that has been updated for 2011.

More: Get a super savings account | Interest rates must rise next month | Why you'll earn less in 2011