With doom and gloom being widely predicted for the jobs market as the credit crunch bites, redundancy is becoming a real threat for many. Losing your job is among the top stressors in life, alongside divorce and bereavement, but is there a silver lining to this cloud?

Volker Patent and Ros Searle, both Occupational Psychologists at The Open University, argue that the experience of redundancy, or the threat of it, can be turned into something altogether more positive. 

Volker Patent says:

“Anyone facing uncertainty at work should start thinking ahead, before job loss becomes a reality. Developing an existing hobby into something that can provide a second income is a good idea. If you are into music crafts, gardening or similar then look at whether you can realistically work this up into something viable, should redundancy strike.”

Being broad-minded about potential jobs is essential. Just looking for other jobs in the same sector might not be fruitful, but looking at opportunities in other sectors could throw open the possibility of a brand new career path.Thinking outside the box could throw up some options you have not previously thought about.

Preparing ahead of time might seem fatalistic, but re-training is something you might want to consider if there’s another career that interests you. You should also keep your professional skills up to date as a matter of course. Even if redundancy doesn’t affect you, the doors that training can open might just be worth going through. 

If you are made redundant, then Volker suggests that, hard as it may be, keeping in touch with your ex-colleagues can be a good thing.

“New opportunities may come from these contacts and besides, you will need support from a variety of people – including those you worked with in your last job and possible in jobs before the last one.”

It can be both a relief and daunting to re-enter the workplace when you secure a new post, says Volker. 

“Trust in the new employer may be shaky as there may be a risk that those hiring could be firing later down the line. But on the other hand, some companies look to reposition themselves in economic downturns, facing turbulence by enhancing the skills set of their staff.”

Balancing opportunity with realism is key – even short term jobs can be a good stepping stone and provide long term benefits, so they shouldn’t be dismissed as an option. The skills you gain and contacts you’ll develop could be a great way to progress your career and position you well in the job market.

Opting for career change demands flexibility and willingness to train. Using redundancy payouts strategically for re-training can be a smart investment as new job opportunities often depend on having the right skills and qualifications. A level of self-awareness is also a good thing, says Volker:

“Many people discover new interests through re-training and become more aware of the skills they can bring to the workplace. This increased self-awareness can be a great asset and drive people in new directions that they wouldn’t have previously considered."

Although a worrying time, it’s important to manage your stress and stay healthy whilst you are looking for new job and when you take up employment again – as starting a new job can be just as stressful. 

Simple ways to keep positive:

- Keeping close control of your money – if you want to know what you’re really spending write it down

- Taking regular physical exercise – to keep to in good condition and help you manage your stress

- Avoiding self blame

- Making life style changes e.g. eating more healthily

- Not being afraid to ask for and receive support from others

Among the psychological impacts of redundancy is a downturn in confidence and self-esteem, and the lack of trust in future employers – in case it happens again. Some people also feel there’s a stigma attached to redundancy which can lead to them asking “why me?”.  “It’s important not to dwell on the negative aspects of redundancy, “says Volker. “Acknowledging the situation, regaining control and thinking carefully about your next steps will pay dividends in your job future.”