
Losing your job is never an easy experience. Whether you’re laid off, fired, or decide to leave by choice, unemployment is full of uncertainty. You might doubt your skills and abilities, and worry about how you’re going to make ends meet. All of this takes a toll.
There’s a real psychological impact of unemployment that often goes unacknowledged, which can make you feel isolated. Here’s what losing your job can do to your mental health – and what you can do about it.
- Unemployment causes stress
Being unemployed when you don’t want to be can be stressful, leading to anxiety over lack of income and benefits. Stress can make existing mental health problems worse, and can also weaken your immune system, leading to issues like trouble sleeping and mood swings.
- Depression and anxiety might arise
According to recent research, those who became unemployed during the course of the study were much more likely to suffer from issues like depression, anxiety, and medical issues or illness.
Some men in the study struggled with self-confidence, while those who had support from friends and family had higher levels of esteem.
The findings confirm that being out of work is a challenging time in a person’s life, and maintaining good mental health during a gruelling job search can be difficult.

Here are some ways to help you cope:
1. Take care of yourself
When you’re looking for a job, it can be hard to stay motivated. Stress can make it difficult to maintain a healthy diet, exercise regularly, and spend time relaxing. Many people feel guilty whenever they’re doing something other than looking for work, which isn’t healthy!
It’s vital to take time for yourself. Get regular physical activity, focus on sleep and healthy eating, and use mindfulness techniques such as meditation to keep your spirits up and encourage you to find the right job.
2. Lean on friends and family
Some people feel ashamed or embarrassed when they lose their job. However, hiding yourself away from those you love won’t help your wellbeing.
In fact, isolating yourself will only increase your stress and anxiety, put a strain on your relationships, and might have an impact on your self-esteem during the job-hunting process.
3. Switch careers
In some cases, unemployment might be a good opportunity to consider a career change. If you’re feeling burnt out or are concerned about the outlook of your current career, it can be worth thinking about making the switch to a new one.
There are many high-demand, well-compensated jobs to choose from, though you might need to consider upskilling and/or undergoing training to broaden your horizons.
Dennis Relojo-Howell is the managing director of Psychreg and host of ‘The DRH Show’. Connect with him on Twitter @dennisr_howell.