A persistent headline recently in the news is that employees can make more money on unemployment than working.  While that can be true in some scenarios, what the news fails to report is that taking that there are significant drawbacks to couch surfing over job searching.  Here are our top seven:

401K Considerations: If you are not working, one of the first payments most people stop making is a contribution to their 401K.  Many employers offer free 401K matching up to a certain percentage, which equates to free money.  Choosing unemployment will equate to a smaller 401K nest egg upon retirement, which can have a dramatic impact on your lifestyle in your later years.  It can also mean that an individual may not be able to retire as young as they had hoped.

Contribution to Your Social Security Fund: Social security replaces a portion of a worker’s pre-retirement income.  The amount of social security an individual is entitled to receive considers their lifetime earnings.  This can equate to fewer retirement benefits than those that spent their entire career working.

Bonuses: Many employers incentivize their high-performing employees through tips, bonuses, or spiffs.  These bonuses pay structures reward grit and dedication.  Those choosing not to search for new employment do not have access to these types of financial rewards.

Insurance: While there are government insurance plans that are available for the unemployed, not everyone qualifies.  Those that are on government sponsored insurance programs will need to jump through several hoops to get covered.  Options for care are limited and complaints of long wait times are common.

PTO: Full-time employees often receive holiday, sick pay, and vacation time.  This is intended to allow employees to take time off to recover from illness or recharge their batteries without losing pay.  Those choosing unemployment rather than actively seeking work do not have the luxury of paid time off.

Advancement Opportunities: The employees with the highest probability for promotions have a dedicated track record of meeting or exceeding goals and expectations.  Employers that view resumes with a long employment gap and no reasonable expectation are very hesitant to choose that applicant over one with a more established career path.