Unemployment - 5 Long Lasting Effects

1. Lower salaries for a lifetime

For many, it may mean a major career setback that lowers income rates and success for many years to come. Being out of work doesn’t just mean lost wages for those months of unemployment. 4%, though in some cases it can be much more. On average, an unemployment spell will reduce wages about 3. Those who are laid off or fired often get back into the workforce at a much lower salary, and many are forced to take jobs that are below their skill and experience levels or not in their field of study at all, which can be a major career setback.

2. Changes in mental health

It’s an extremely stressful situation, and one that often leads to depression, anxiety, and substance abuse. While the majority of the mental health issues associated with unemployment will be alleviated by finding a new job, some of these issues may make it difficult to find work, as individuals may not be functioning well enough to look for a job. It shouldn’t come as a surprise that long-term unemployment can cause a variety of mental health issues.

3. Failing confidence in democracy

In the U. S. A study using the World Values Survey found that those who face long-term unemployment changed how people felt about civil society and basic democratic institutions. , the jobless were 11% more likely to agree that “having a strong leader who does not have to bother with Parliament or elections” was a good thing. People who have been unemployed for more than a year were even more likely to agree.

4. Damaged self-esteem and self-worth

Researchers found that 38% of the long-term unemployed reported losing self-respect while they were out of work. Being unemployed for a long stretch can take a serious toll on the amount of self-respect, esteem, and worth a person has for him or herself. Numerous studies have been done on the correlation between self-esteem and joblessness, with all reporting higher levels of depression, negative mood, and lowered self-esteem.

5. Increased likelihood of future unemployment

As unfair as it may be, unemployment, especially long-term unemployment, seems to create a stigma that can follow an individual through decades of their career. A study completed in 1993 reveals that not only do the long-term unemployed get less pay when they do find work, but that they’re also more likely than their coworkers to face future unemployment. Even worse, these periods of unemployment were found to be longer than those of others who hadn’t previously lost work.