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Being unemployed can be a difficult and very stressful situation for many people.  The reality is that without a job, we cannot create the lifestyle we desire and won’t have the income to do all the things we want to do in our free time.  So creating strategies for coping with the negative effects of unemployment will help you through these difficult times.

Understanding The Negative Effects of Unemployment

One of the most unfortunate aspects of unemployment are the old stereotypes.  People tend to dwell on the negative aspeccts of unemployment.  For example:

Definition:  Unemployment means people who are able, available, willing to find work and actively seeking employment.

While that may be partially correct, it doesn’t give the real truth.  In fact it leaves out many important factors.  What about those made redundant?  How about people who are on zero hours contracts?  Or those whose jobs have been replaced (or will be) replaced by A.I (artificial intelligence – robots)?

Being unemployed isn’t always a choice.  You should try not to let it affect your mental or physical well-being.  At the end of the day, you need to maintain a good positive outlook in order to get your next job.

The tips we have recommended will allow you to:

  • Identify the negative effects of unemployment.
  • Create a plan and strategies to help you cope and turn those negatives into positives.

What are the negative effects of unemployment?

  • Loss of income – money concerns
  • Fall in your living standards
  • Not able to secure a mortgage or rental
  • Increase in health risks – stress, depression
  • Decrease in the quality of your diet, general life style changes
  • Increase in marital / partnership break downs or break ups
  • Social exclusion or decreased access to wider networks

 Longer term negative effects of unemployment

  • Loss of marketable skills, experience and knowledge of current sectors, industry news and up dates
  • Long term unemployment lowers the chances of finding employment.
  • Negative effects on personal and family wellbeing.
  • Increase in crime in extreme cases.

 Here are some strategies for coping with unemployment

It would be very easy for some people to hide away from the world and focus on the negatives. So, try to get out and about networking with your friends, colleagues and don’t forget to let your family know.  There are lots of organisation out there that can help too.

depression negative effects of unemployment

Money advice

It’s sensible to get some impartial money advice and guidance on the benefits you are entitled to claim.  Find out if you qualify for help with your mortgage payments or advice consolidating your loans and debts. Check to see if your insurance included an unemployment element.

It’s not wise to bury your head in the sand!  Your situation is likely to get worse if you ignore the problem.  Most organisations have processes in place to manage these situations and will be much more helpful if you approach them sooner.

Sharing Can Reduce The Negative Effects of Unemployment

Talk to friends and family

It’s so important that you call on your closest and most trusted friends.  Research shows that people with a good social network have lower risk of depression and associated illnesses.  It really is good to talk.  Don’t be afraid to ask for help.  You’d want to help your friends if they were in the same situation.


There are a variety of methods to network these days.  You can network with friends and family.  You can network at Job Fairs, Breakfast Seminars or Business events.  There are lots of social media platforms you can network on without even leaving the house.  It’s also free to network online.

Ensure you have an up to date LinkedIn profile.  A high percentage of recruiters use LinkedIn to advertise jobs and to find suitable candidates.  They find candidate profiles by using relevant keywords.  Therefore, it’s essential you set up your account with the most relevant keywords for the type of job you are seeking.  Review several job adverts for the best keywords to use.

Create a plan of action to beat the negative effects of unemployment

conduct SWOT to reduce negative effects of unemployment

Use this opportunity to reflect on your skills, knowledge, achievements, different types of experience and don’t forget about your transferrable skills.

Conduct a personal S.W.O.T analysis:  Strengths, Weaknesses, Opportunities and Threats.

Set aside a few hours daily to search for jobs.  Tailor your cover letter and CV to suitable vacancies.  Set up job alerts and follow companies of interest on LinkedIn, Twitter and Facebook.

Register with recruitment agencies

Today it’s important to use several methods of securing employment.  Getting the help of a good recruitment agency will be time well spent.  They will usually have a really good understanding and knowledge of the local jobs market.  A good recruitment agency usually have very good relationships with employers in the local area.

Temp to permanent

Don’t over look temporary assignments.  This is a great way of demonstrating and proving your ability.  You also put yourself  in the ideal position to get a permanent offer in the future.  It’s a working interview and that’s a win-win for both you and the company.

Attend Job Fairs

Most well organised Job Fairs will only allow organisations to attend if they have open vacancies.  Make sure you have an up to date CV and LinkedIn account.  These events are a great place to build up a good network.  Treat every conversation as a mini informal interview.  Think about your appearance and dress.  Prepare a 30-60 second pitch on why you are attending the fair and what you can offer the organisation.


There are lots of opportunities to volunteer with a variety of different business and roles to suit your skills and interest.  Volunteering is a great opportunity to support the local community.  It could be a great opportunity to network with local organisations and people.  It may lead to a paid job.  Depending on the job, you may learn new skills which will help you land the next job.

Getting out of the house will have positive mental health benefits too.

Maintaining a Positive Outlook Can Reduce The Negative Effects of Unemployment

The 2008 global banking crisis and growth of the online economy has had a significant influence on the world of work.  As a result the chances are that most people will experience a period of unemployment at some time.

If you are unemployed, use your time productively.  Your jobsearch will be much more effective if you maintain a positive attitude.

Some colleges offer free courses for those not in work.  Access any courses that will enhance your existing skills and increase your chances of employment.  You will also increase your network of people who may know of job opportunities.

Try and keep yourself fit and healthy.  If you can, enrol in a gym or sign up for leisure activities.  Going for walks or running can improve your health and put  you in a good mindset – at no or very little cost.

Two of the negative effects of unemployment are anxiety and stress.  You should make sure you get enough sleep.  A good night’s sleep will recharge your batteries and put you in a good mood ready for your job search.

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