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American Focus > Blog > Health and Wellness > Losing your job is bad for your health, but there are things you can do to minimize the harm
Health and Wellness

Losing your job is bad for your health, but there are things you can do to minimize the harm

Last updated: March 28, 2025 8:42 pm
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Losing your job is bad for your health, but there are things you can do to minimize the harm
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The recent firing and furloughing of federal workers and contractors by the Trump administration have had a significant impact on the economy and the well-being of those affected. As a professor of social work who specializes in studying the relationship between finances and health, I am particularly concerned about the potential health hazards faced by individuals who have lost their jobs.

Research indicates that losing a job can have a profound effect on both physical and mental health, especially when the individual perceives the situation as a catastrophic event rather than a temporary setback. While the financial implications of job loss, such as income reduction and financial strain, are undoubtedly significant, studies show that the individual’s perception of their financial situation can have a more substantial impact on their health than the actual financial circumstances themselves.

In a study published in 2023, we found that how a person feels about a decline in income is 20 times more influential in determining their health outcomes than the financial change itself. This highlights the importance of addressing the psychological impact of financial hardship in addition to the practical challenges it presents.

Financial precarity, characterized by insufficient funds to meet basic needs, can lead to both psychological distress and physical health problems. The worry and stress associated with financial difficulties can contribute to conditions such as high blood pressure, back pain, and obesity. Additionally, financial strain can impact mental health, leading to anxiety, depression, and lower self-esteem.

When faced with financial challenges, individuals may turn to unhealthy coping mechanisms such as substance abuse, gambling, or excessive shopping. These behaviors not only harm physical health but can also exacerbate financial difficulties, creating a vicious cycle of stress and poor health outcomes.

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To mitigate the negative effects of job loss on health, it is essential for individuals to adopt positive coping strategies. Seeking support from friends and loved ones, networking for new job opportunities, volunteering, and maintaining healthy habits such as regular exercise and sufficient sleep can help protect both mental and physical well-being during challenging times.

Overall, it is crucial for individuals to prioritize their health and well-being during periods of financial hardship. By taking proactive steps to address both the practical and emotional aspects of job loss, individuals can minimize the negative impact on their health and work towards a healthier future.

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