Navigating the job market can be a daunting task, especially when concerns about job stability loom large. In fact, a Bankrate job seeker survey found that 33 percent of workers are worried about the stability of their current job.
Although the unemployment rate remains relatively low, it is increasing slightly from 2023 to 2024. At the time of writing, it has risen to 4.3% from 3.5% a year ago. The labor market remains tight, and there are not many opportunities for job seekers to find a job that matches their skills and qualifications.
As concerns about job stability continue, it’s important to be proactive and use the tools and resources available to you to search for stable work while saving money. By implementing the strategies below, you can take steps toward financial stability, confidently navigate a competitive job market, and improve your chances of landing the job you want.
Key job search statistics
- American adults are struggling to save money: 32% have less saved than they did a year ago, and 9% have no savings. (Bankrate)
- While 36% of Americans say they focus on both paying off debt and saving for emergencies, 53% say they focus on just one or the other. (Bankrate)
- According to the survey, 21% of respondents said they would pay for a large unexpected expense with a credit card instead of using emergency savings. (Bankrate)
How to save money while job hunting
People may be looking for a new job for a variety of reasons, such as career advancement, a higher salary, a desire for a change, etc. They may also be looking for work after a break from work. Either way, it is important not to rush into a new job and manage your finances while researching possible positions.
You need to find a role that plays to your strengths and aligns with your interests, personality and priorities.
— Lynn Berger, New York City-based career counselor and coach
From day-to-day expenses to preparing for interviews, there are several elements you will need to budget and save for during this transition period. Here are some tips to guide you through the process.
Save money while you search
Whether you’re currently unemployed or looking to change jobs, there are several ways to save money and maximize your resources during your job search. First, take advantage of free job search sites that can help you find opportunities without spending a penny. Platforms like LinkedIn, Indeed, and Glassdoor give you access to a wide range of jobs and allow you to apply directly through their portals. Using these sites allows you to avoid subscription fees and paid job boards.
Building a budget-friendly wardrobe is another effective way to save money. Instead of spending a lot of money on new clothes, try searching thrift stores, consignment shops, and online marketplaces for affordable, gently used business attire. Also, consider clothing rental services, where you can get a variety of clothes for a nominal fee.
If you have student loans, income-based student loan repayment plans can help ease the financial burden while you search for work. These plans adjust your monthly payments based on your income and the number of people in your family, allowing you to manage your loan repayments while you search for work. It’s important to contact your loan servicing company to find out what options are available to you.
Consider allocating some of your savings towards a job search fund. You can set aside money for expenses like transportation, interview attire, and professional development. Having a dedicated savings account can help you stay organized and track job search-related expenses while earning a little extra money in interest. Be sure to compare the best interest rates to get the most out of your savings.
Build a network through acquaintances
Networking can be a powerful tool in finding a job. “Start with people you’re comfortable talking to and then build up your confidence speaking to others,” suggests Berger. “Share your situation and let them know you’re looking for advice or suggestions.”
Use sites like LinkedIn to let your network know you’re job-ready. Updating your LinkedIn profile to reflect your job search can help your connections find relevant opportunities and introduce you to potential employers.
Job fairs and conferences also provide valuable networking opportunities where you can connect with employers, industry professionals, and fellow job seekers. Networking in person allows you to make a lasting impression, showcase your skills, and secure a job lead without having to pay for application fees or online job boards.
Have all your resources ready in case someone asks for them. Before you start networking, make sure your resume is up to date and tailored to your specific industry or field. To catch the attention of the right people, research the best format for your field and customize your resume accordingly.
Develop personal skills
Developing personal skills can significantly increase your employability and earning potential. Employers value individuals with specialized skills and may reward them with additional responsibilities, promotions, or higher salaries.
Take advantage of free programs like CareerOneStop and Apprenticeship.gov that provide resources and training opportunities to help you learn new skills or strengthen your existing ones, while also earning valuable certifications, licenses or industry-recognized credentials that make you more credible and marketable.
Alternatively, consider attending a specific program online or at a community college. These programs often have lower tuition costs than a traditional four-year degree and focus on the practical skills needed in specific industries. For example, a two-year degree or certificate program to become a dental hygienist, HVAC repair technician, or electrician can give you the qualifications you need to enter those fields. Not only do these jobs require less investment of time and money, but they also offer competitive salaries that can quickly offset the upfront costs.
Evaluate your spending habits
Whether you’ve lost your job or are actively searching for a new one, it’s important to take the time to create or review your budget and track your expenses. Identify how much of your income you have from all sources — savings, unemployment benefits, intermittent work — and allocate it to basic expenses like housing, groceries, and debt payments.
Look for areas where you can cut back on expenses, such as cooking at home, cutting back on entertainment costs, and shopping smarter. You can also cancel or pause subscriptions that you don’t use often to create more space in your budget. By proactively cutting back on unnecessary expenses, you can make the most of the resources available to you.
If your savings aren’t enough to cover your expenses, consider alternative sources of income. Freelance, part-time work, and remote work opportunities can help you achieve some financial stability during this period. Services like Upwork, TaskRabbit, and Fiverr offer you the opportunity to showcase your skills and earn an income in a flexible way.
