Long-term unemployment and other major stressful situations can lead to psychological dysfunction and despair.
Studies have shown that “financial strain and loss of personal control lead to depression, impaired functioning and poor health.” The financial issues and loss of control can be caused by unemployment, so job loss can inadvertently cause some mental disorders and psychological and physical issues.
Even after getting another job, there are long-lasting effects due to the initial unemployment. The study said that “this chain of adversity appears stable over a 2-year period, suggesting that even reversible life events such as job loss can have lasting effects on those who experience them.”
The idea that only those who have mental disorders are more prone to losing a job and then suffer more psychological effects is challenged by Richard Price, who also conducted the previous study.
In his introduction, Price said that this idea was challenged by looking at people “who had lost their jobs as a result of mass layoffs and plant closings.” He said that “these people were unlikely to have become unemployed because of mental health problems.”
The people in that study were also found to have more anxiety and depression symptoms than employed persons. They were also three times more likely to “show extreme scores on mental health symptoms” than people with stable jobs.
Since there is evidence for unemployment causing mental disorders in some way, one might wonder what types of mental disorders are possible. The obvious ones are forms of anxiety and depression. However, obsessive compulsive disorder, a form of an anxiety disorder, could be a likely candidate.
Obsessive compulsive disorder, however, is generally thought to have more biological and early environmental causes. In an abnormal psychology textbook, it said that “someone must develop anxiety focused on the possibility of having additional intrusive thoughts.”