As the COVID-19 crisis continues to worsen across the globe and here at home, more and more businesses are reporting lost sales, cuts in spending and other economic consequences that are impacting their financial stability, including the ability to pay employees.

As typical American life has come to a near screeching halt, businesses across the U.S. are being forced to close their doors amidst plummeting sales and new social distancing guidelines — leading to an increase in layoffs. In fact, nearly 10M jobless claims have been filed over just the past two weeks, according to the Labor Department. 

Furthermore, the economic fallout caused by COVID-19 could already be leading the U.S. into a recession. “I wouldn’t be one bit surprised if when we look back at the data, it is decided ... that the recession started in March,” Alan Blinder, a former Federal Reserve vice chairman and now a professor at Princeton, told CNBC.

While economists can’t predict exactly how severe the economic impact of the COVID-19 pandemic will be, the typical post-World War II recession has led the unemployment rate to jump about 2 to 2.5 percentage points — which would  translate to a roughly 6% unemployment rate (given the recent 3.5% rate, which is near 50-year lows). During the country’s last recession — the Great Recession, the worst downturn since the Great Depression — about 8 million Americans lost their jobs.

How the government is responding

The federal government has announced several new policies aimed at reducing the impact that the coronavirus crisis will have on the U.S. economy and American families. Here are a few of those measures to know about:

• Congress passed a $2 trillion relief bill that will send money directly to Americans and greatly expand unemployment coverage. The bill also includes student loan changes, different retirement account rules and more. (see below for more details)

• Updates for those on Medicare and Medicaid.

• Cutting the national interest rate to near zero.

• Declaring a national emergency.

• Temporarily waiving interest on federal student loans.

• New York Gov. Andrew Cuomo announced that the state would waive the seven-day waiting period for unemployment insurance and told utility companies not to cut off electricity, gas or water service to those unable to pay their bills.

The government is expected to continue to issue new policies and measures in the coming days, so make sure to check out coronavirus.gov for the latest updates.

What American workers face in the midst of increased economic fallout

According to a financial planning survey by First National Bank of Omaha in Nebraska, half of all U.S. adults are expected to be living paycheck to paycheck this year — and 53% don’t have an emergency fund that covers at least three months of expenses.

Here’s why that can become a big problem: federal law does not require that employers pay severance to workers impacted by mass layoffs — meaning it’s up to each individual company’s own discretion. With that said, a large majority of U.S. employers do offer some type of severance package to employees who are laid off, but the policies greatly vary in terms of what specific types of workers are offered. In fact, more than half of all businesses don’t offer severance to all of their employees — only those that meet certain requirements laid out by the company’s policy. For example, here are just a few common requirements for a worker to qualify for severance:

• Must have worked for the company for at least five years.

• Must be management level or above.

• Must be a salaried employee.

While the impact of increased economic fallout will vary across different industries, it’s a good idea for all American workers to prepare to be impacted in some way.

Read more: Coronavirus: 7 tips to protect your financial life

What to do if you’ve been laid off or are facing a loss in income

Whether you’ve already been laid off or are preparing yourself for a potential loss in income, there are several things you can do to protect and improve your financial situation both now and down the road. We’ve compiled some tips from experts to help you navigate this difficult time.

Apply for unemployment benefits

Depending on your situation, you may be eligible for unemployment insurance — also known as unemployment benefits — that’s offered jointly by the federal and state governments. If you’ve been laid off or been impacted as a freelancer/independent contractor, these benefits can help you cover some of your essential expenses like groceries, utilities and more.

As part of the $2 trillion stimulus package, the federal government has approved payments to individuals, expanded unemployment coverage, student loan changes, different retirement account rules and more. The bill greatly expands eligibility for unemployment benefits, meaning people who are self-employed, work part-time and more are now able to qualify for assistance. Below are a few specific things to know about the bill, but keep in mind, some of these numbers and details may vary based on your state.

• How much will individuals get? Most adults will get $1,200, although some will get less. For every qualifying child age 16 or under, the payment will be an additional $500.

• Who gets the full amount? Single adults with Social Security numbers who have an adjusted gross income of $75,000 or less will get the full amount. Married couples with no children earning $150,000 or less will receive a total of $2,400. And taxpayers filing as head of household will get the full payment if they earned $112,500 or less. Above those income figures, the payment decreases until it stops altogether for single people earning $99,000 or married people who have no children and earn $198,000. According to the Senate Finance Committee, a family with two children will no longer be eligible for any payments if its income surpassed $218,000. You cannot get a payment if someone claims you as a dependent, even if you’re an adult. 

• What if I can’t work because my employer closed the business? If you are unemployed, partly unemployed or unable to work because your employer closed down, you’re covered under the bill.

• What if I am self-employed? You are eligible for payment. Self-employed workers will also be eligible for the additional $600 weekly benefit provided by the federal government.

• Which year’s income do I use? 2019

• How to apply: If the Internal Revenue Service already has your bank account information from your 2019 or 2018 returns, it will transfer the money to you via direct deposit based on the recent income-tax figures it already has. On March 30, the I.R.S. said on its website that it would build a portal where people can update their information “in the coming weeks.”

• When will payments arrive? Treasury Secretary Steven Mnuchin has said he expected most people to get their payments by April 17.

• What if I haven’t filed tax returns recently? That could impact your eligibility. “People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment,” the I.R.S. announced on its website on March 30. 

• What if I don’t get my payment? According to the bill, you will get a paper notice in the mail no later than a few weeks after your payment has been disbursed. That notice will contain information about where the payment ended up and in what form it was made. If you couldn’t locate the payment at that point, it would be time to contact the I.R.S. using the information on the notice.

• Will the payment be taxed? No. You will not have to pay income tax on any amount you receive from this stimulus bill.

• What if my income is already being garnished due to another debt in default?  The bill temporarily suspends nearly all efforts to garnish tax refunds to repay debts, including those to the I.R.S. itself. But this waiver may not apply to people who are behind on child support.

• Who is NOT eligible? Workers who are able to work from home, and those receiving paid sick leave or paid family leave are not covered. New entrants to the work force who cannot find jobs are also ineligible.

• How long will payments last? The bill provides all eligible workers with an additional 13 weeks. So participants in states with 26 weeks would be eligible for a total of 39 weeks. The total amount cannot exceed 39 weeks, but it may be shorter in certain states. The extra $600 payment will last for up to four months, covering weeks of unemployment ending July 31.

You can find out more about your state’s requirements, including other exceptions made due to the pandemic, at CareerOneStop, which is sponsored by the Department of Labor.

Take a couple of days to prepare

If you get laid off or maybe you were already looking for work, take a little bit of time to strategize before you just start applying to every open position you can find.

“You’ll feel like you’re fixing your problem, but I would recommend thinking and planning for a couple of days,” said Biron Clark, who is the founder of Career Sidekick and was among LinkedIn’s 2019 Top Voices for job search and careers.

Beyond just the current situation, immediately applying to every available opportunity out there can very easily turn into a waste of time and energy. Instead, take a few days to be strategic about your next move.

Steps to find the right opportunity

• Tap into your network: Find out if they know about potential positions that would be a good fit for you and your expertise, and ask for suggestions of types of roles or work that you’d be qualified for that you might not have thought about.

• Be strategic about where you look: Do some research into industries/companies that are currently hiring and figure out which types of roles for which you may be qualified. If your previous industry is suffering, this may be a good time to consider switching to a new industry/career that fits your expertise and experience.

  • For example, with the healthcare industry on the front lines of this crisis, that may be a good place to look. And they don’t just need healthcare professionals — there are plenty of administrative, support and other types of roles currently in demand.

• Ask for references: This is also a good time to ask former managers, coworkers and/or mentors for letters of recommendation. Think about the roles you’re considering and ask your references to speak to your strengths and experience that are relevant to those specific opportunities.

“If you can identify the one or two sectors that are seeing more demand or need for workers that can boost your chances of finding a job,” Clark said.

Don’t give up

Whether you’ve already been looking for a job or just started, it’s important that you remain diligent in your search.

“Some employers are still hiring and the only sure way to not get a job is to stop applying,” said Clark. “If you stop applying, there is zero chance of you getting a job.”

Expect a different kind of hiring process

There are companies hiring right now, but the process may not look exactly like what you’re used to. With so many businesses adapting to a remote workplace, the hiring process may take a little longer than usual, and you should expect things like video interviews.

If you do get a request for a video interview, treat it just like you would an in-person one.