What Layoffs Do To Our Brain, and How to Bounce Back After Job Loss

New research reveals that layoffs could be sparking a mental health pandemic in the U.S. 

The American Psychological Association notes that the impact of layoffs can have a long-term impact on workers’ mental health and emotional well-being. As the workforce witnessed a 140% increase in layoffs in July 2025 compared to July 2024, laid-off workers are left suspended in a ‘what’s next?’ mindset, grieving the loss of a job while battling the uncertainty of navigating a fiercely competitive job market. 

That’s why Careerminds has enlisted the help of its resident career expert Amanda Augustine, CPCC, and licensed counselor, Stephanie Thomas, MS, LMHC, to explore the psychological impact of being laid off and share strategies to help job seekers move forward. 

The neuroscience of job loss: Counselor explains why layoffs hit hard

Licensed mental health counselor Stephanie Thomas breaks down why layoffs hit both mind and body:

“Job loss can feel deeply personal because our work is often tied to our identity, self-worth, and daily structure. Even when the layoff isn’t about our performance, we may still question our competence, replay what we ‘should have’ done differently, and worry about how others perceive us. That combination of identity loss, self-blame, and disrupted routine makes it feel far more personal than it may actually be.

“When we experience any intense emotion, such as a layoff, the amygdala — the part of the brain that processes many of our emotions — becomes active. It’s well known for its role in fear, anxiety, and danger, but it also influences memory, social interaction, and learning from rewards and punishment. Once the amygdala is triggered, the sympathetic nervous system kicks in, activating the fight-or-flight (or freeze, or fawn) response. This can raise your heart rate, affect your breathing, make you feel on edge, and even impact memory. 

“Because the brain dislikes uncertainty, it may create negative stories to fill in the gaps, fueling intrusive thoughts such as ‘I’ll just be rejected again.’ These patterns can lower motivation and make it harder to keep job hunting. Over time, prolonged uncertainty can harm both mental and physical health, increasing anxiety and depression symptoms.”

Bouncing back after a layoff: A career coach’s tips to restart your job search

Amanda Augustine is the resident career expert for Careerminds and a Certified Professional Career Coach who shares actionable strategies to help professionals navigate the job market after a layoff: 

1. Take time to reflect before jumping back in

Getting laid off is a shock, even when you see it coming. But it also offers a rare opportunity to hit pause: no pings, no status meetings, no Monday check-ins. Use this time to breathe and process this change before diving headfirst into job applications.. 

Allow yourself a few days to work through all the emotions that come with a layoff. Give yourself space to regroup and reset. That short pause helps you move forward with a clearer head and a stronger mindset.

2. Take stock and set a strategy

Once you’ve caught your breath, do a quick career check-in. What skills, strengths, and expertise do you bring to the table? How do they align with what’s in demand in today’s market?

This is also the time to get real about your financial runway. If you have a cushion, you may be able to hold out for your ideal role. However, if money is tight, it might make sense to pursue freelance work, part-time gigs, or what I call a “stepping stone” job — a role that helps you build the necessary skills and experience to achieve your long-term career goals.

In today’s competitive market, being patient is important, but being strategic is essential. 

3. Update your online presence with purpose

It takes mere seconds to make a first impression, and recruiters scan dozens of LinkedIn profiles every day. Make sure yours stands out for all the right reasons. 

Update your profile photo, banner image, headline, and “About” section so quickly showcase your expertise and make a strong first impression. Keep your messaging clear and concise to highlight the strengths you want employers and recruiters to see first. A polished LinkedIn profile can be the difference between being overlooked and landing an interview.  

4. Tap into your network

One of the most effective ways to land a job after a layoff is through your connections. In fact, employee referrals dramatically increase your chances of getting an interview.

Start by letting those in your network know you’re exploring new opportunities, and be specific about the type of role or industry you’re targeting. Reconnect with old colleagues, alumni groups, and professional associations. Networking isn’t about asking for a job; it’s about starting conversations that can lead to referrals, insights, and opportunities you won’t find on a job board.

5. Set boundaries when job seeking 

When you’re out of work, it’s tempting to spend every waking hour firing off applications. But in a stressful period, especially if finances are a concern, it’s important to set boundaries around your search. 

Treat your job search like a job: set work hours, stick to them, and then give yourself permission to log off. A routine helps you stay consistent while also protecting your mental health. You’ll be sharper and more productive during “on” hours if you allow yourself to truly unplug during “off” hours.

Also, create a new email address or inbox folder dedicated to your job-search efforts. That way, you won’t be pinged with job-search reminders when you’re trying to take a break.

6. Tailor your resume for each role

After a layoff, it's natural to want to send your resume out to as many openings as possible, as quickly as possible. But a “spray and pray” approach rarely pays off. 

Instead, take a few minutes to study the job posting. Pull out the top skills and priorities the employer is emphasizing, and weave those into your headline, skills section, and the first few bullet points under your work experience. Re-order your achievements so the most relevant ones appear first.

This extra effort greatly improves your odds of getting noticed.

7. Expect ups and downs

Even the most qualified professionals hit roadblocks during a job search. Long silences after applications, rejections after promising interviews, or hiring freezes can come out of nowhere to halt your momentum. These setbacks can sting, but they don’t define your worth or potential.

Focus on what you can control: invest in your professional network, refine your applications, tailor your resume, and stick to a consistent routine. Each “no” gets you one step closer to the right “yes.” Staying grounded and resilient will help you navigate the emotional valleys that come with the process.

---

Amanda Augustine is a well-recognized expert in career advancement, ranging from developing one’s professional brand to acing that next interview. As a Certified Professional Career Coach (CPCC) and a Certified Professional Resume Writer (CPRW), she has spent more than 20 years helping professionals improve their careers and find the right job sooner. In 2015, Amanda became the resident career expert for career.io’s suite of brands: TopResume, TopCV, resume.io, and Careerminds. 

Stephanie Thomas, MS, LMHC, is a Licensed Mental Health Counselor in Florida with over 10 years of experience supporting children, adolescents, and adults through life’s challenges. She specializes in helping individuals and families understand and cope with diagnoses, build resilience, and navigate difficult transitions to lead more fulfilling lives.