I'm sorry to hear your plight. This happened to my ex-supervisor who was made to retire early. We used to work in a government department which experienced merger between 2 separate govt departments. Off hand, it appears that your employer is asking you to resign so that they do not need to pay you one month compensation pay, which they will have to give you if they terminate you. I do not know what works for you. Getting compensation from a termination may solve your short term financial woe. Depending on your line of occupation, your prospective employers may not like the fact that you were asked to leave. (Anyway I left my previous employer on my own and many employers including my current employer cannot believe that I would leave a government job on my own). Don't lose heart. I spent several months looking for that job too after I left my last one. I found my new job after 3.5 months and have been with my current employer for 18 months. What's more, I'm glad I left my last job.