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Mental and Emotional Stressors of Long-Term Unemployment


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  • The number of long-term unemployed Americans (those unemployed for 27 weeks or more) is rising.
  • Unemployment over a long period of time can affect your long-term career growth, potential earnings, and mental health.
  • You can begin mitigating these effects by confronting the stress and anxiety of long-term unemployment and taking control of your financial plan.

A year into the pandemic, a growing number of Americans are crossing the threshold into long-term unemployment. 

Four million unemployed Americans (40% of total unemployed workers) have been out of work for at least 27 weeks, the marker of long-term unemployment, according to the Labor Department’s latest jobs report

Even as COVID-19 cases decline and jobless claims (while still very high) slow, economic data point to a sluggish recovery ahead, with industries like hospitality and warehousing — already predicted to be among the last to return to normal — continuing to see high declines in available jobs, according to the Bureau of Labor Statistics.  

While regular state unemployment programs provide up to 26 weeks of unemployment benefits, federal stimulus in response to the pandemic has temporarily extended benefits for unemployed workers who otherwise would have already exhausted them. But another unemployment cliff on March 14 again raises the stakes for Americans still struggling in a weakened economy, with more federal relief still under discussion.

Even with federal benefits extensions allowing unemployed workers to maintain some income, slipping into long-term unemployment can have long-term effects on your career, financial future, and mental health. “We’re looking at the real effects on people’s long-term income and wealth and health,” says Elizabeth Pancotti, a senior advisor at Employ America, a progressive labor policy group.

If you’ve sustained long-term job loss over the past year, you can begin taking action today to set yourself up for a lasting financial and emotional recovery. 

The Risks of Long-Term Unemployment

The six-month mark of long-term unemployment is important because of the greater potential for lasting financial damage, experts say. After that point, workers are more likely to drop out of the workforce for good, data from Urban Institute show. And those who do become employed again tend to see diminished income for the rest of their careers. 

“If you’ve been out of work for so long and you just need something, you might take a job where the wages are much lower than your previous job,”  Pancotti says 

How the Damage Goes Beyond Your Finances

The financial challenges caused by unemployment don’t just impact your wallet.

“It really takes a toll on the mental health of anyone who is trying to survive but at the same time is not able to make ends meet,” says Dr. Alex Melkumian, a licensed marriage and family therapist and founder of the Financial Psychology Center in Los Angeles. 

When someone has a consistent income, even if it’s not as much as they would like, they’re able to plan their life and future accordingly. But there’s much more financial volatility in being unemployed — from day-to-day decisions to long-term planning — which can cause added stress and anxiety.

“Constantly living with the stress and uncertainty really wears you out and wears you down over a longer period of time,” Melkumian says. And without taking action, you may land in an even more dire financial situation later. 

What You Can Do to Reduce the Stress

If you’re experiencing long-term unemployment, here are a few first steps Melkumian recommends to care for your mental health while protecting your financial future:

Get Real with Your Emotions

Start by confronting the real…



Read More: Mental and Emotional Stressors of Long-Term Unemployment

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