In the last few months, unemployment rates across the country have spiked. Here in Indiana, we’ve seen numbers as high as 18 percent in some counties.

While I believe Indiana’s recovery will be strong and lasting thanks to our healthy work ethic and innovative spirit, the current reality is that with many employers responding to the economic downturn, layoffs are often out of an employee’s control. While losing one’s job can be both emotionally and financially draining, there are steps dislocated workers can take to help keep their finances on track during their time of unemployment.

Among the first things workers should do after a job loss is file for unemployment benefits with the Department of Workforce Development (DWD). If they were laid off or lost their job through no fault of their own, they may qualify for unemployment benefits that cover up to 26 weeks, sometimes more when combined with federal benefits and possible extensions. The DWD also has WorkOne Centers located around the state that help unemployed workers update their resume, practice their interview skills, look for jobs and obtain professional training.

Another important action for dislocated workers is to reevaluate their monthly budget and short-term monetary needs. They should assess how they spent their money before and which of their current monthly expenses are fixed (i.e. mortgage payments) versus those they can adjust based on not having their regular income (i.e. entertainment). Unemployment benefits should be factored into their adjusted budget to determine how long they can make ends meet with those payments combined with what they already have in savings. In general, dislocated workers should try to reduce spending whenever possible and make a plan for the money they do have.

Visit www.IndianaInvestmentWatch.com to download the free brochure “Job Dislocation: Making Smart Financial Choices after a Job Loss” and to access additional money management tips.