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Losing a job is a result of numerous causes. You may decide to leave at times, but other times the decision is made for you. An extended term of unemployment can provide you the chance to explore other interests and gain knowledge that will help you in your next job. In this post, we go through how a year of unemployment can impact your job search, how to explain it in an interview, on a resume, and in a cover letter, as well as how to rapidly find a new work.

Your chances of getting callbacks and interviews could be impacted if you’ve been unemployed for a year. But many hiring managers place more value on how you used your free time than they do on the fact that you didn’t hold down a regular job. If you give a good reason for the break in employment and demonstrate your commitment and willingness to work, many employers won’t disregard you only because of it.

Employers typically inquire about extended periods of unemployment when they see them on a candidate’s résumé. You may advance in your job hunt and provide a clear, professional response to this question by being prepared.

1. Explaining unemployment on a resume

If you feel comfortable addressing your employment gap on your resume, you can include within your employment section a brief explanation of why your last job ended. Consider inserting it as a bullet point under your last job. You may consider this option if your job ended through no fault of your own, such as:

  • The company moved to another state or country and you chose not to move.
  • You were laid off.
  • The company closed.
  • You were training for a career change.

In these cases, your explanation can help ease some of the worries hiring managers may have about your time off. For example, consider the following explanation for a gap in employment:

The CEO of Rogers Consulting retired, and two months later the shareholders sold the company, eliminating all positions.

You should also add any activities from your unemployment period that provided you with more skills or relevant experience, such as volunteering, freelance work and education. If these positions are significant, consider listing them in the same format as your other paid jobs.

2. Explaining unemployment on a cover letter

Your cover letter provides space for you to offer more details about your employment history. Consider addressing your gap in employment in a paragraph at the end of your cover letter, after you have outlined your experience, qualifications and skills. This is your opportunity to talk about your situation in your own words.

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Hiring managers want to know why you lost your job and why you have been out of work for so long. You should try to explain these answers in a way that demonstrates personal growth. You may also share what you’ve been doing during your time off, especially if those skills can translate to the workplace.

Here is an example of how you could explain that you’ve been unemployed for a year on a cover letter:

Last year, my company laid off 100 employees. As a mortgage broker, the market was challenging due to the housing recession. After searching unsuccessfully for a new position for three months, I decided to take time off from applying to allow the market to recover.

During these months, I discovered an interest in home staging. I took an online course and developed my skills through an online simulation. Over the past six months, I have worked with 12 clients. Three clients’ homes were on the market for over a year before working with me. After my services, the houses sold within a month. This experience has shown me the importance of being adaptable to change, remaining open to learning new things and applying my skills in creative ways.

3. Explaining unemployment in an interview

If you receive an interview, this is a good sign that your period of employment does not disqualify you from the job. Most likely, though, your interviewer is going to ask you about this gap. You should prepare to answer these questions honestly while demonstrating a positive outlook.

Tell your story in a compelling way. Share what you learned, what advice you might give to someone in the same position and what you did during your time off. Try to avoid placing blame on your previous employer. Discuss your approach to searching for a job. Perhaps you didn’t need to find a job immediately and chose to take a break. Hiring managers want to know these details to better understand your motivations and level of engagement.

Consider the following answer for the question, “Can you tell me why you haven’t been working for the last year?”

Yes, thank you for asking. In 2017, my family moved from Colorado to Seattle for a significant promotion for my wife. My children were three and four, and my wife was working 60 hours a week. We discussed the situation and both agreed that I should take some time off to take care of the kids while she settled into her new role.

For the past year, I’ve been a full-time dad. I coached two seasons of tee-ball and organized a neighborhood carpool for daycare. It’s been the most rewarding work I’ve done. Now I am ready to find a professional role that allows me to use these organizational and interpersonal skills, along with the technical proficiencies I gained in my ten years as a developer.

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