How To Navigate Job Loss And Care For Your Mental Health While Unemployed
Job loss is very common, with one survey suggesting that approximately 40% of people have lost a job at some point in life. Despite being a widespread phenomenon, job loss can have a significant impact on a person, not only financially, but emotionally as well. When a person loses their job, they often experience a major transition period, with shifting family roles and the potential for significant mental health challenges. Keep reading to learn more about the potential effects of job loss as well as strategies for managing stress and implementing self-care techniques during a period of unemployment.

The mental health effects of job loss, even with unemployment insurance
Some people may feel a drop in their self-esteem, as work can sometimes provide a sense of fulfillment beyond a source of income. Also, job loss can often lead to a sense of rejection. Even if a person knows that a job loss is solely due to a recession or cutbacks in a specific industry, they may still experience it as a form of personal rejection.
Many providers on BetterHelp now accept major insurance carriers. In many states, certain therapists on BetterHelp may be in-network with certain insurance plans. Coverage depends on your plan, provider, and availability.
When sessions are covered, members typically pay an average copay of about $19 per session. Check your in-network status on the BetterHelp site. Coverage varies by state and provider availability.
Shifts in identity when not part of the labor force
For some people, job loss can sometimes lead to a shift in various life roles. For example, a person may have been the main breadwinner in their home while working, so they may have to take on a new role in the household while unemployed. Even if a person has the full moral support of their family, new roles can be difficult to adjust to, as people may sometimes see financial contributions as a core part of their identity.

Common mental health challenges when looking for employment
Some people may find themselves in a much longer job search than they expected. Even if they’re attending interviews that seem to go well, they may go months or even years without a job offer. Well-meaning friends may ask them how their job search is going, but these questions can add pressure on an unemployed person.
A long, protracted job search can sometimes make a person wonder if they’ll ever work again in the same job or in the same field. Some people may experience anxiety or depression as a result, which may be diagnosed by a therapist if the symptoms qualify.
In some cases, individuals may also experience challenges with substance use during a job search. These may develop if a person starts using substances in an attempt to cope with stress and anxiety related to job loss.
Self-care strategies to consider while unemployed
While a period of unemployment can have a profound impact on a person’s mental and physical health, there are a number of evidence-based self-care strategies that may help a person protect their well-being during this challenging time. The following are just a few examples:
- Practice breathing exercises. While you may think of breathing exercises as something people do in the height of a particularly stressful moment, regular practice may help reduce the physical and mental effects of stress daily.
- Get regular physical exercise. Research suggests that exercise can lead to the release of endorphins, which are often referred to as the body’s “feel-good” hormones. Moving your body may help boost your mood and reduce your risk of physical health problems over time.
- Spend time with loved ones. Although a job search can take up much of a person’s time, people who are unemployed can often benefit from scheduling regular time with friends and family members. The simple presence of loved ones can boost mood and help a person feel supported.
- Practice meditation. Meditation doesn’t have to involve long sessions or retreats. Even short, five-minute meditation sessions may help lower stress levels and increase mindfulness.
Mental health support after losing a job
In addition to implementing self-care strategies, people who are experiencing unemployment may benefit from speaking with a mental health professional. A licensed therapist can help clients identify and challenge negative thought patterns that may arise during a period of unemployment. This process may lead to greater confidence and more productive job interviews and reduce the risk of certain mental health challenges like anxiety or depression. If you’re already experiencing mental health challenges, a therapist can offer treatment to address your symptoms.

Seeking online mental health support while unemployed
Some people who are going through a period without employment may be concerned about the cost of therapy. One more cost-effective option is to seek support through online therapy, which tends to be more affordable than in-person therapy. Also, online therapy allows individuals to connect with a therapist from home at times that suit their schedule.
In addition to offering affordability and flexibility, online therapy has a strong basis of support in the psychological literature. For example, one systematic review and meta-analysis suggests that, in some cases, online cognitive behavioral therapy (CBT) can actually be more effective than in-person therapy for treating symptoms of depression, which can be common when people are unemployed.
Takeaway
How do you cope with unemployment stress?
You may find that you can reduce unemployment stress by implementing a number of evidence-based self-care strategies. For example, regular exercise and mindfulness meditation may help mitigate the effects of stress. Also, leaning into social assistance provided by community programs may help reduce stress related to financial hardship. Finally, some people may find it helpful to join a support group for people who are unemployed.
What are the side effects of being unemployed on physical and mental health?
Being unemployed can sometimes lead to anxiety or depression, which can manifest as various physical symptoms. Some people may experience difficulty sleeping, low energy, headaches, stomachaches, and sexual dysfunction.
What is unemployment insurance?
Unemployment insurance is a government assistance program. It provides payments to people who are unemployed by no fault of their own.
How can friends and family support a person after a job loss?
Family and friends can support an unemployed person in numerous ways while they search for a new job. One way to support a person is to actively listen to them without trying to ask too much or too often about their job search. Some people may feel discouraged if people continually inquire about their progress. Instead, it may help to spend time with the person by engaging in non-work-related activities together.
What are some tips for re-entering the labor force after not having employment?
Some people may feel nervous about re-entering the labor force after a period of unemployment. Individuals in this situation may benefit from writing down their strengths and accomplishments to begin with renewed confidence. Also, those re-entering the workforce might consider reading up on the latest developments in their industry, including the latest trends and programs that are used in their field.
How do you cope with job instability?
Job instability can significantly affect a person’s stress levels, especially when there’s news of a high unemployment rate from the US Bureau of Labor Statistics’ Current Population Survey. Also, some people may worry about job security if they hear about an uncertain job outlook for people with certain demographic characteristics, such as people over a certain age. Discouraged workers might benefit from limiting their exposure to the news, which sometimes has negative information about the job market.
Some people may also benefit from finding alternative ways to build their savings, such as side gigs, as this may reduce stress from perceived job instability. Also, people who are concerned that they may have fewer skills than others in their field may benefit from up-skilling, even while still employed.
How does losing a job affect you mentally?
Sudden job loss can sometimes make it challenging to stay positive. Many people find it difficult to maintain their self-confidence, and the need to find new employment can feel overwhelming. Some individuals may experience a loss of their sense of purpose, but it can be helpful to use coping techniques and remember that this is only a temporary setback. Social support and professional help may help you navigate this period of life.
What are the long-term effects of job loss?
The long-term effects of job loss can include the development of mental health conditions like depression and anxiety disorders. According to the American Psychological Association, job loss can be especially difficult to navigate for older workers. However, this isn’t always the case. Many people who lose their jobs take that time to focus on learning new skills and finding resources to help them move forward.
Can you get PTSD from losing a job?
In some cases, job loss may lead to the development of post-traumatic stress disorder. Losing one’s job can be one of the most stressful experiences in life, considering that it often means a lack of income and stability. According to an empirical study, more people than usual sought mental health services after losing their jobs or worrying about job loss during the Great Recession, which took place from late 2007 to 2009. If you’re feeling stressed about losing your job and are experiencing symptoms like flashbacks, nightmares, and avoidance of anything that reminds you of your past career, consider seeking professional help from a therapist.
What should you do when you are jobless and depressed?
Maintaining a consistent daily routine that includes mental and physical self-care activities can be crucial. Although you may feel overwhelmed by the loss of your job, it’s possible to move forward. Try to schedule regular time blocks for your job search. During these time blocks, you can apply for jobs, follow up on previous applications, and network with past co-workers.
You might consider seeking help from a career guide or career counselor as well. This can be particularly beneficial due to the recent shifts in the market and labor economics. Don’t forget to maintain your social life and connect with other job seekers, as support from friends and loved ones can make a significant difference in your mental health.
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