A theme that comes up at INOU meetings is the negative effects of unemployment on a person’s sense of wellbeing, their confidence and mental health. According to the Irish Health Survey 2019, published by the Central Statistics Office (CSO) in December 2020, 21% of unemployed people reported some form of depression, whereas the figure was only 9% for employed persons. There are a number of contributing factors for this disparity in mental health: financial, social, and systemic.
As an initial minimum level to maintain those made unemployed due to the pandemic, the Pandemic Unemployment Payment was set at 172% of standard working age payments. This put the Jobseeker’s rate of €203 in stark contrast. Money problems are a known contributing factor to mental health issues. A 2011 US study showed a correlation between lower household income and a number of mental health issues, and that reductions in household income increased instances of mental health issues.
Lack of resources can increase uncertainty in people's lives, diminishing their sense of control over their own lives, further increasing anxiety and undermining their self-esteem. This can be compounded by material living conditions and poverty, causing higher levels of persistent stress, which in turn can lead to clinical anxiety and depression. With limited resources available for mental health treatment, those who develop long-term mental health issues can find their employment prospects diminished, unable to enter into decent employment and unable to afford treatment which would allow them to do so.
A person in receipt of a Jobseeker’s payment is expected to show that they are ‘genuinely seeking work’. Such pressure can have a negative impact on a person’s mental health and well-being if they have had little joy in securing a job. This can be further compounded by the threat of sanction and a cut to their welfare payment, which in turn can drive people further into poverty and debt.
In the INOU’s Decent Work project report, link here, it noted that “Overall, mental health was seen as important, with the need for an explicit acknowledgement of people’s wellbeing.” (p10) And amongst the key findings that “The concept of empowerment is a very important one, essential in practice, and needs to be an integral part of Ireland’s employment services and supports.” (p36)
Many in unemployment report feelings of loneliness and social isolation. Although unemployment does not appear to have a significant impact on close relationships (well established friendships and family relationships) it can impact on developing new ones. Lack of resources can limit the opportunities to engage in social events and activities, which in turn can impact on people’s ability to hear about and access employment.
It is not uncommon that a job can become a source of identity, the core of how someone thinks of themselves and how they place themselves in the world. This can lead to a loss of identity when unemployed, and in the worst cases the taking on of a negative identity through internalisation of social stigmas surrounding unemployment.
Accessing employment can help alleviate a lot of the challenges to mental health and well-being presented by unemployment. In addition to potential social and financial advantages, employment provides structure on a person’s day which can be difficult to maintain independently. However, for employment to be beneficial it is essential that it is decent employment.
The INOU’s Decent Work project report quotes the International Labour Organisation definition which states that “Decent work involves opportunities for work that is productive and delivers a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men” .