The Job loss is similar to losing one’s identity and often leads to feelings of grief, depression, and anxiety. This significantly impacts one’s mental health and quality of life. There is a cycle of grief that occurs when one loses a job. Depression can be caused by the emotional rollercoaster that losing a job entails. Along with that, the uncertainty of the future can create anxiety in an individual who is experiencing unemployment.

Throughout this Article, the loss of job, or unemployment will be explored. While losing a job can be an isolating experience, many people have been there. Reaching out to people around you, whether former co-workers or trusted friends and family, is important to support you. Putting your thoughts and feelings into words can also help you process them and feel more in control.

According to the Canadian Mental Health Association (CMHA), between 70 and 90% of unemployed individuals live with severe mental illness and those who experience depression and anxiety are over 30%. According to the Labour Force and CBC News (2024), The Canadian economy lost 2,200 jobs in March while the unemployment rate rose to 6.1 percent. This is pertinent to show how many Canadians are affected by job loss as it is not a sole experience. Many Canadians face similar struggles.

How Job Loss affects an individual and their mental health:

1. Creates stress and anxiety
2. Develops a sense of uncertainty or hopelessness about the future
3. Loss of identity
4. Financial strain
5. Social isolation
6. Feeling like a failure

Job loss or unemployment can cause psychological harm to individual mental health which can in turn impact motivation, sense of control, confidence, and self-respect.

Grief and Job Loss

According to Kubler and Ross, unemployment can result in stages of grief that include denial, anger, bargaining, depression, and acceptance which may not necessarily occur in this order.

Each stage of grief in unemployment can have a significant impact on individuals. Denial may lead to a delay in seeking new employment opportunities, while anger can manifest as resentment towards employers or society. Bargaining may involve making unrealistic compromises to secure a job, and depression can result in feelings of hopelessness and low self-esteem. Finally, acceptance allows individuals to move forward and adapt to their new circumstances.

Grief can affect different domains. This includes:

1.    Personal
2.    Social
3.    Family

Personally, grief can disrupt sleep patterns, appetite, and concentration. Individuals may struggle to engage in activities they once enjoyed or find it challenging to focus on job search or other responsibilities. They can mourn the loss of co-workers or a sense of identity.

Social isolation can occur for individuals impacted by unemployment or job loss as they can feel embarrassment or shame that they lost their jobs. The interactions an individual has with coworkers are not present and this disruption of routine can create depressive and anxious states. 

Family obligations can intensify feelings of grief due to not providing for their family and feelings of financial instability. Shame is also something that can create social isolation within a family.

Emotions associated with Grief and Job Loss:

●      Shock
●      Disbelief
●      Sadness
●      Anger
●      Frustration
●      Guilt

Grief shows up differently than depression and anxiety and creates:

1.    Negative Beliefs
2.    Attitudes

These create internal struggles and decrease an individual’s motivation to look for a job or work on developing skills for employment opportunities.

The grief experienced by employees who have worked for a company for a long time and have children or people they take care of is likely to be more impacted as they did not anticipate being unemployed.

Employers can support employees in coping with unexpected job loss by offering counseling services, career transition assistance, and resources for financial planning.

Additionally, creating a supportive and transparent work culture can help employees feel valued and connected during this challenging time.

Depression and Job Loss

Depression can be triggered by job loss due to its emotional, financial, and social stresses. Job loss can have long-lasting effects on mental health, including increased rates of depression, anxiety, and feelings of low self-worth. The financial strain and uncertainty that come with unemployment can exacerbate these symptoms, making it crucial for individuals to seek support and resources to maintain their mental well-being during this challenging time.

Depressive symptoms include:

●  Depressive moods
●  Decreased motivation
●  Feeling empty
●  Feelings of overwhelm
●  Irritability

Physical/Biological Issues associated with job loss due to depression:

●  Weight gain
●  Myocardial infraction
●  Stroke
●  Stress
●  Issues with sleep
●  Immune issues due to stresses

Cognitive Issues associated with job loss due to depression:

●  Memory impairment and issues with concentration
●  Rigidity and decreased problem-solving
●  Feelings of worthlessness that impact self-esteem & confidence
●  Negative patterns of thought
●  Lack of responsibility
●  Difficulty setting goals

Emotions affecting cognitive processing

●  Anger
●  Anxiety
●  Sadness

Social issues related to job loss due to depression:

●  Social Isolation
●  Financial responsibilities
●  Fear of discrimination or shame
●  Challenges in finding a job
●  Impact on the sense of belonging within the community

Unhealthy Behaviour Patterns associated with job loss:

●  Alcohol Consumption
●  Tobacco Consumption

When looking at all these areas that can affect an individual experiencing unemployment or job loss it is critical to understand the anxieties associated with job loss. It is important to listen and encourage someone who is facing job loss to talk about the things going on with them as they may feel self-loathing or feel as if they cannot do anything right.

Anxiety and Job Loss

As a result of the uncertainty of financial stability, career prospects, and individual identity, job loss can cause significant anxiety. This anxiety can lead to a variety of negative long-term effects, including an increased risk of mental health disorders such as depression and insomnia. It can also hinder the individual’s ability to find new employment or make decisions about their future career path. Additionally, the stress and worry associated with job loss can strain personal relationships and impact overall well-being.

Anxious symptoms include:

●  Anger
●  Worry
●  Fear
●  Lack of self-worth
●  Lack of Confidence
●  Feelings of Inadequacy

○  Individual
○  Social comparisons

●  Shame
●  Lack of sense of purpose or lack of success

Physical Issues associated with job loss due to anxiety:

●  Headaches
●  Muscle tension
●  Stomach and digestive issues
●  Issues with sleep

Cognitive Issues associated with job loss and anxiety:

●  Internalizing Failure or rejection
●  Contribute to negative self-talk
●  Minimal self-confidence
●  Stress
●  Memory and processing

Areas depressive and anxious symptoms appear most include:

●  An Individual’s Identity

○  Feelings of inadequacy in all areas of life

●  The future of an individual

○  Financial anxiousness
○  Lifestyle changes
○  Social relationships
○  Career changes

●  The Relationship of others

○  Withdrawing and developing unhealthy thoughts about rejection
○  Misunderstanding others due to feelings of isolation

●  Career

○  Looking for future jobs
○  Feeling a lack of competence in other roles

●  Mental health

○  Depressive states
○  Anxiousness
○  Guilt
○  Emotional Instability

●  Unhealthy Coping habits

○  Excessive Habits

■  Eating
■  Alcohol/tobacco consumption

○  Isolation

■  Withdrawing from family
■  Withdrawing from friends
■  Withdrawing from community

Sometimes we fall into unhealthy coping mechanisms when negative thinking comes into play. Coping with the psychological impact of job loss requires effort from the individual as well as support from others.  Here are some healthy coping mechanisms for job loss:

1. Seek support from friends, family, or a support group to talk about your feelings and experiences.

2. Practice self-care activities like exercise, meditation, or hobbies to reduce stress and promote well-being.

3. Set attainable goals and create a daily routine to maintain structure and a sense of purpose.

4. Update your resume, enhance your skills, and explore new job opportunities to stay proactive and focused on the future.

5. Consider seeking professional help from a therapist or career counsellor/coach to navigate the emotional and practical challenges of job loss.

Maintaining a positive mindset during job loss is crucial as it can help you stay motivated, resilient, and open to new opportunities. It allows you to see setbacks as temporary and focus on your strengths and abilities, ultimately increasing your chances of finding a fulfilling career path.

Ways to stay motivated:

1. Feel and Acknowledge feelings about the job loss
2. Stay consistent with a routine
3. Explore your strengths and skills to help look at different opportunities
4. Ensure to take time for yourself: Physically, mentally and emotionally

Where to seek support

1. Family
2. Friends
3. Community
4. Mental Health Professionals

Parting Notes

At The Insight Clinic, we have many therapists who can help with grief, stress, anxiety, depression, anger, and isolation associated with job loss.

You can reach out today to book an appointment with our skilled and trained therapists to help you gain understanding and develop healthy coping strategies when you are feeling stressed, depressed, or anxious about unemployment.

At The Insight Clinic, counsellors provide CBT as well as strength-based therapy that is beneficial to teens or adults who have experienced unemployment or job loss. CBT can help individuals reframe negative thought patterns and develop healthier coping mechanisms for job loss.  Feel free to reach out today! If you are experiencing a crisis or emergency, please reach out to the police (911) or go to your local hospital.