It’s reasonably well accepted that redundancies have a negative impact on our health. Research from Harvard highlights how losing one’s job during the financial crisis impacted the physical and mental health of young adults.

The study examined data from the Panel Study of Income Dynamics (PSID) for young adults aged between 18 and 27, which is a time commonly associated with significant psychological, economic, and social changes.

“The findings of this study offer some important nuances that policymakers should consider as they try to find ways to support young adults impacted by recessions,” the researchers explain.

Family support

There was a glimmer of hope, however, as those who had good support from their family were much less likely to suffer from mental health problems than those who lived alone.

As previous evidence has shown, job losses were also strongly linked to feeling discouraged about the future, and indeed worries about future job prospects. Thankfully, this impact on their mental health didn’t appear to extend to their physical wellbeing, nor indeed the likelihood of engaging in risky behavior, such as drug-taking or drinking alcohol.

There was an impact on the entire family when fathers lost their job, however, as both the physical and mental health of young adults suffered in this scenario.

“The living situation is noteworthy,” the researchers explain. “Job losses of fathers, who are the primary earners in most households in our sample, cause more psychological pressure for young adults.”

This is likely due to the loss of household income that may force young adults to take on additional responsibilities to support the household budget. There were also significant problems for young adults in low-wealth households, with these youngsters typically experiencing higher stress, as well as more obesity and binge drinking after a job loss.

“We do see important differences in physical health and behavior by wealth, as poorer individuals tend to have worse outcomes compared to their wealthier peers,” the researchers conclude. “They end up worrying more about the future when they lose jobs and also face other health problems.”