Experiencing a layoff can trigger a profound emotional response- grief, anxiety, shame, and a loss of identity are all common reactions. As mental health professionals at Anchor Therapy, we understand that job loss is not just a financial disruption but a psychological upheaval that can deeply impact self-worth and emotional stability. The uncertainty of “what is next” can activate fear responses, especially when work has been tied closely to a sense of purpose or routine.
Career counseling through a mental health lens offers more than just job search strategies- it provides a compassionate space to process the emotional toll of a layoff. By integrating therapeutic techniques with practical career guidance, you can begin to heal, redefine your professional identity, and take steps forward that align with both your values and emotional well-being.
Anchor Therapy is a counseling center in Hoboken, NJ with mental health therapists specialized in helping children, teens, adults, couples, and families with anxiety, depression, relationship issues, trauma, life transitions, and more. Anchor Therapy is accepting new clients and is now providing in-person sessions and teletherapy sessions to residents of New Jersey, New York, and Florida.
What are the mental effects of layoffs?
Layoffs can have a profound psychological impact, often triggering a range of intense emotional responses. Initially, many individuals experience shock, disbelief, or numbness, especially if the layoff was sudden or unexpected. These feelings can quickly evolve into anxiety, fear, or panic as the reality of financial insecurity and uncertainty about the future sets in. Check out our blog “4 Ways to Deal with Financial Stress.”
For many, employment is not just a source of income but a key part of their identity, and its sudden loss can lead to a deep sense of grief, similar to mourning a significant personal loss. If you resonate with this, our blog “How Does Grief Affect Your Identity?” is a must-read.
After being laid off, you may feel…
Shock or disbelief, especially if the news was unexpected
Anxiety about financial stability and the future
Shame or embarrassment, particularly when discussing the layoff with others
Grief or loss, as you mourn your role, routine, or workplace community
Anger or frustration toward the employer or circumstances (View our blog “The Most Important Things You Need to Know About Anger Management”)
Depression, including feelings of hopelessness or low motivation (Check out our blog “3 Benefits of Working With A Depression Therapist”)
Isolation, from coworkers, professional networks, or even friends
Loss of identity, especially if your self-worth was tied to your job
Relief, in some cases, if the job was causing stress or dissatisfaction
Uncertainty about what steps to take next or how to rebuild
As time passes, feelings of shame, guilt, or self-blame may emerge, particularly in a culture that often equates professional success with personal worth. Individuals may ruminate on what they could have done differently, even in cases where the layoff was due to external factors like organizational restructuring. This internalized sense of failure can contribute to low self-esteem and symptoms of depression, such as hopelessness, fatigue, and withdrawal from social support systems. Without a structured daily routine or sense of purpose, some may struggle with feelings of aimlessness or loss of motivation.
In addition to emotional challenges, layoffs can increase vulnerability to chronic stress which can affect both physical and mental health over time. Elevated stress levels can worsen anxiety disorders, disrupt sleep, impair concentration, and lead to unhealthy coping mechanisms such as substance use or social isolation. The longer the period of unemployment, the greater the risk for ongoing psychological distress. For these reasons, integrating mental health support into career transitions is critical- not only to help you navigate the practical aspects of job loss but also to promote long-term emotional resilience and well-being.
How to emotionally handle a layoff
Research shows that, in the first six months of 2025 alone, roughly 10 million people were laid off or discharged in the United States.
Emotionally handling a layoff begins with acknowledging your feelings without judgment. It is natural to experience a mix of shock, sadness, anger, or even relief- whatever arises, allow yourself to feel it. Suppressing emotions or rushing to “move on” can delay the healing process. Giving yourself permission to grieve the loss of your role, your routine, and your sense of security is an important first step in processing the experience in a healthy way.
What does grieving a job look like?
Shock or denial, feeling numb or disconnected from the reality of the layoff
Crying or emotional outbursts as you begin to process the loss
Persistent sadness or low mood, especially when thinking about your previous role
Anger or resentment toward the employer, management, or system
Guilt or self-blame, wondering if you could have done something differently
Loss of identity, questioning your purpose without the job
Isolation, withdrawing from social or professional connections
Ruminating, replaying conversations or events leading up to the layoff
Disrupted sleep or appetite, due to emotional stress
Difficulty concentrating, especially when trying to plan next steps
Avoidance, such as ignoring emails or delaying job searching
Nostalgia, longing for former coworkers, routines, or the comfort of familiarity
Fear of the future, feeling uncertain or overwhelmed by what comes next
Gradual acceptance, as you begin to process the loss and envision a new path forward
The next step is to avoid internalizing the layoff as a reflection of your worth or abilities. Many layoffs occur due to external circumstances (e.g., budget cuts, restructuring, mergers, etc.) not because of personal failure. Still, the mind can quickly spiral into self-blame or shame. Try to reframe the narrative: being laid off is something that happened to you, not something you caused. This shift in perspective can protect your self-esteem and support emotional resilience. Read our blog “Do You Understand Your Self-Esteem?”.
Staying connected to others is crucial during this time. Layoffs can lead to isolation, especially when shame or embarrassment makes you hesitant to reach out. However, speaking with trusted friends, family, or a therapist can provide both emotional support and practical encouragement. You may also find connection through professional networks, support groups, or others who have gone through similar experiences. Sharing your story can help you feel less alone and more empowered. Check out our blog “Navigating Job Loss with Career Counseling.”
Establishing a new daily structure can also support emotional well-being. Without the routine of work, days can begin to feel empty or unproductive, which can worsen symptoms of depression or anxiety. Create a schedule that includes job search efforts, physical activity, social time, and restorative practices like journaling, mindfulness, or hobbies. Even small routines can provide a sense of stability and purpose during an otherwise uncertain time. View our blog “How to Create A Daily Routine.”
Finally, consider using this transition as an opportunity for self-reflection and growth. Once the initial emotional wave settles, you may find space to reevaluate your values, goals, or career direction. What did you enjoy or dislike about your previous role? What kind of work-life balance do you want moving forward? Our blog “3 Ways to Achieve Work-Life Balance” is a must-read.
By integrating emotional processing with intentional planning, you can begin to rebuild not just your career but your confidence, sense of direction, and overall well-being! Read our blog “The Ultimate Guide to Building Self-Confidence.”
How to rebound from being laid off
Rebounding from a layoff is not just about finding a new job, it is about rebuilding confidence, clarity, and emotional balance. Working with a career counselor at Anchor Therapy can be an important part of this process, especially when the layoff has impacted your self-esteem or created uncertainty about your direction. Career counselors offer a supportive, nonjudgmental space to process the emotional impact of job loss while also helping you reframe the situation as a transition, not a failure.
One of the first ways a career counselor can help is by guiding you through a skills and strengths assessment. After a layoff, many people question their value in the job market or feel unsure of what they have to offer. A career counselor helps you take stock of your experience, identify transferable skills, and articulate your unique strengths in a way that builds confidence and informs your job search strategy. They can also support you in clarifying your goals- whether it is staying in the same field, shifting industries, or exploring new career paths altogether. Check out our blog “Career Counseling: Protect Your Mental Health During A Job Change.”
Beyond career planning, a career coach can also help with practical aspects like resume building, interview preparation, and networking strategies. But what makes career counseling different from simply working with a recruiter or coach is its holistic, person-centered approach. A mental health-informed career counselor understands that emotional healing and career success are interconnected. They can help you recognize and work through internal barriers- like fear of rejection, imposter syndrome, or burnout- that may impact your ability to move forward.
What are the benefits of mental health-informed career counseling for layoffs?
Emotional support during a vulnerable time, helping you process grief, anxiety, and identity loss
Holistic approach that integrates both career strategy and mental well-being
Help rebuilding confidence and self-worth after job loss
Reframing the layoff, reducing shame and self-blame by viewing it through a compassionate lens
Clarifying values and goals, supporting more intentional next steps
Identifying and addressing internal barriers like imposter syndrome, perfectionism, or fear of rejection
Creating structure and routine, which can stabilize mood and motivation
Developing personalized job search strategies that align with your emotional needs and life context
Support in managing uncertainty, building resilience during transitions
Improved coping skills, reducing the risk of depression, burnout, or chronic stress during unemployment
Safe space for self-reflection, allowing for growth beyond just finding a new role
Stronger long-term outcomes, including greater career satisfaction and emotional well-being
Ultimately, working with a career counselor helps you approach your next chapter with more clarity, confidence, and resilience! Instead of rushing to replace your old job out of fear or desperation, you can use this time to realign your career with your values and well-being. With compassionate guidance and a structured plan, the layoff becomes less of a dead end and more of a doorway to personal and professional growth.
Check out our blog “Career Counseling: Can A Therapist Help Me Find The Right Job?”.
How long does it take to recover from a layoff?
The time it takes to recover from a layoff varies widely depending on individual circumstances, including emotional resilience, financial security, the job market, and the level of support available. Emotionally, it may take weeks or even months to process the loss and regain a sense of stability, especially if the layoff was sudden or tied closely to your identity. Some people experience an initial shock followed by grief while others might feel stuck in anxiety or self-doubt for a longer period. Recovery is not always linear- feelings can resurface unexpectedly, especially during job interviews or networking events that remind you of what was lost.
From a practical standpoint, job searches often take several months, particularly if you are seeking a role that aligns with your skills, values, and financial needs. During this time, it is important to focus not only on job hunting but also on emotional healing. Working with a mental health-informed career counselor at Anchor Therapy, maintaining supportive relationships, and engaging in routines that promote well-being can all accelerate recovery. Ultimately, “recovery” is more than just finding a new job. It is about regaining confidence, clarity, and a sense of purpose as you move into the next chapter of your career.
Read our blog “Career Counseling for Reentering the Workforce.”
How to regain confidence after a layoff
Regaining confidence after a layoff starts with acknowledging the emotional impact of the experience. It is common to feel rejected, insecure, or question your professional value, especially if your identity was closely tied to your role. Rather than suppressing these feelings, give yourself permission to grieve and reflect without judgment. Recognizing that a layoff is often a result of economic shifts or organizational changes, not personal failure, can help you begin to separate your self-worth from the loss of your job.
Rebuilding confidence also involves reconnecting with your strengths and achievements. This is where working with a career counselor or trusted mentor can be especially helpful. Through guided reflection, you can identify past successes, transferable skills, and the value you bring to a team or organization. Updating your resume, revising your LinkedIn profile, or even conducting mock interviews can serve as practical exercises to remind yourself of your professional capabilities. Seeing your experiences laid out in a clear, strengths-based way can be a powerful confidence boost.
Finally, take small, consistent steps to regain momentum. Set achievable goals, such as reaching out to one former colleague, attending a networking event, or applying for a few roles each week. These actions help rebuild a sense of agency and progress, even if the job search takes time. Confidence often grows not from one big win, but from steady, intentional action paired with self-compassion. With support, reflection, and a renewed focus, it is possible not just to bounce back but to move forward with greater clarity and self-belief.
While a layoff can feel deeply unsettling, it also offers a chance to pause, reflect, and realign with what truly matters to you, both personally and professionally. With the right support and a compassionate approach, this chapter can become a powerful turning point, not just toward your next job, but toward a more meaningful and resilient version of yourself.
Victoria Scala
is the Social Media Manager, Intake Coordinator, and Community Engagement Director at Anchor Therapy in Hoboken, New Jersey. She is a graduate of the Honors College of Rutgers University-Newark and is currently studying Clinical Mental Health Counseling at the graduate level. In her roles, Victoria is committed to managing the office’s social media/community presence and prioritizing clients' needs.
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