Social impacts of the recession | findings

The impact of job loss and job insecurity on social disadvantage

Jan 2009 |
Topic | Social Inclusion
Researcher | Matt Barnes

Qualitative research by the Social Exclusion Task Force (SETF) had shown that the social impacts of the downturn were already being felt by individuals and families who have been affected by job loss and job insecurity.

To supplement this work, SETF commissioned NatCen to undertake secondary analysis and explore the extent to which both people who lose their job and people who feel insecure in their job go on to experience other social disadvantages.

Key findings from our report in December 2009 were:

 

  1. Those who lost their job were more likely to experience common mental health problems.
  2. Those who lost their job were 4 to 6 times more likely to suffer financially.
  3. Those who lost their job saw the changes of a relationship breakdown increase.
  4. Job loss increases the likelihood of eviction
Those who lost their job were more likely to experience common mental health problems.

A significantly greater proportion of those who lost their job in 1991 and late 2008 (37% and 39% respectively) experienced common mental health problems, such as depression and anxiety, than those who were securely employed.

Longitudinal analysis of those who lost their job in 1991 shows that just over two fifths experienced poor mental health in 1 to 2 years of the following 6-year period. Around 1 in 4 experienced poor mental health in 3 to 6 years of this period

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Those who lost their job were 4 to 6 times more likely to suffer financially.

People who lost their job in 1991 and late 2008 were 4 to 6 times more likely to find it difficult to get by financially compared to those who remained employed.

Longitudinal analysis shows that two in three (64%) of those who lost their jobs experienced financial difficulties for one or more years.

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Those who lost their job saw the changes of a relationship breakdown increase.

One in seven (13%) married or cohabiting people who lost their job (in 1991) experienced a relationship breakdown, compared to one in twelve (8%) who were secure in their job.

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Job loss increases the likelihood of eviction

9% of people who lost their job (in 1991) experienced eviction over the next 5 years compared to 3% of people who remained in employment.

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