Income Options
Making Money when You're Unemployed

What are your options, especially if you do not have savings to help you make it through?  Temporary employment through an agency, freelance, consulting or contract work in your area of expertise, or easy-to-get high turnover jobs, are just a few of your options. TOP

First, make sure your taking of a temporary or stop-gap position isn't' going to cut in to your current benefits.  If you're receiving the maximum unemployment, most positions making less that $15.00 per hour will put you in a situation where you are making less money, not more, (and a new claim may end up being based on this lower salary depending the amount of time you worked).  In most cases you will lose your unemployment during the period worked and getting it back can be quite difficult.   Generally, the state unemployment office will conduct an investigation into the company you worked with.  The reason for this is to determine who pays the unemployment.  The company you just worked for or the company that originally let you go.  If you took this temporary job and quit, in most cases you will permanently lose your unemployment compensation.

If you took this position as a temp employee or as a contract worker and stayed through the end of the contract period, you should be able to reopen your unemployment claim.  You will need to prove you were not an employee of the company.  To do this, you will need to show them the original contract signed before the work commenced that explicitly states this fact.

Temporary Work 

Generally this falls into the non-degreed office professions like receptionist, file clerk, and administrative assistant . Some may have accounting area positions in accounts receivable, bookkeeping or other areas that require specialized training or at least a 2-year degree. Most office temp positions pay between $10 and $15 per hour and most will require that you type at least 45 words-per-minute with no errors, or have previous experience in these positions. 

Some temp agencies specialize in other areas including industrial work like  Manpower (factory, building, day labor and other blue collar positions).  MacTemps   places temporary graphic designers and computer people and can pay more than $20 per hour. Others like Paladin (Advertising agency and marketing personnel) and AccountTemps (accounting and financial professionals) focus on specific industries and will have salaries commensurate with the level of expertise. For a list of temp agencies in your area and what areas they cover, check the yellow pages or your city's Business Journal's Book of Lists.  We've provided the LA Business Journal's list of the Top 25 Temporary Placement Agencies for your convenience.

Freelance, consulting or contract work:   Make no mistake, if you go into consulting, you are starting a business.  In order to survive on freelance work, you must have a good network of contacts and a body of work, with success stories and a reputation in the industry as an expert (generally at least 10 years experience in your field).  Executives, managers and those with special skills will often opt for freelance and consulting work.  Pay can vary from a low of $25 per hour for a writer or beginning graphic artist to $600 or more per hour for a senior executive or top corporate lawyer.

There are a few items you
need to keep in mind with freelance. 
 

1. The bad news: Your taxes may be paid quarterly and they may be more.   TOP

2. The good news: Deductions for business expenses.  This is tricky.  Get a good small business accountant  who can guide you through the process, set up your procedures, make your home office deductible and help you minimize your risk. 

3. Figure you will work 4-6 months out of the year if you are lucky. 

4. Get paid in advance of your work, generally week-to-week. 

5. Post on all the online freelance job markets.  The main freelance markets are Monster.com's talent market, FreeAgent.com and Guru.com.  Guru.com will test your knowledge in your expertise before posting your resume.

Freelancing and consulting is a great lifestyle if you are prepared for it. The freedom and challenges you encounter will keep you motivated and happy.  But it's not for everyone.  For the first 1-3 years, it's feast or famine.  You are either rolling in dough and catching up on your bills, or broke and eating Top Raman three times a day. 

Easier to Get Jobs:
Need a quick fix and instant income?  If you have basic communication skills, math competency and no felonies, there are a few high turnover positions that are pretty easy to get.   "Easy to get " means you can be working in 1-3 weeks with a concentrated search effort.  Most of these pay a slight bit more than unemployment.

Telemarketing: It's not glamorous; it's hard work but if you need cash fast and can speak on the phone, telemarketing positions are very easy to get.  The turnover is extraordinarily high due to the high burnout rate and the hours are generally good as most of these positions operate in the evenings and on weekends.  Pay is marginal, generally between $10 and $15 per hour.

Retail: Companies like Nordstrom pay on commission.  Most other retailers pay minimum wage or just above.  The top 0.5% of salespeople at Nordstrom make over $50,000 a year.  Most average between $7 and $10 per hour, but you also get other benefits like a discount on products. 

Paper Routes: Think these don't pay? Think again.  Your local newspaper will have urban routes and rural routes.   Pick up five or six routes in your area and you can bring in $1500 to $2000 per month plus tips for 4-hours a day worth of work, especially in the rural areas. 

The Major Challenge
The hardest thing about these jobs for anyone coming from a corporate position with a college degree and decision-making ability will be cultivating humility.  Swallow your pride, bite your tongue and become a mentor to the college and high school students on the staff.   Do this, and suddenly the job takes on a whole new meaning and actually becomes fun.

As you can see, even if you lack savings, you do have options if you've lost your job.  Whether it's freelance, temp work or going into a position to survive, there are ways to make it through during this period of career transition.

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