14 DAY TRIAL // As if one problem is not enough, it seems to attract others as well. A new research shows that employees losing their jobs due to health issues can experience further increased depression and health deterioration than those losing their jobs due to non-health issues. It also appears that those finding quickly a new job have improved health outcomes, compared to those remaining unemployed for a longer period.
"It's not clear how many people involuntarily lose their jobs for health-related reasons, but shaping policy to meet the needs of this population of the unemployed is critical. We need to know more about this population for intervention and policy reasons. Re-employment appears to be key for mitigating these health effects for people who lose their jobs - either for health-related reasons or other reasons, say a layoff", said co-author Sarah Burgard, assistant professor of sociology with appointments at the Institute for Social Research and the School of Public Health.
Many studies show a connection between involuntary job loss and health deterioration, but there is not an analysis focusing on pre-existing health or external factors, like the socioeconomic background that may boost this connection. Particularly people losing their jobs due to health issues require interim health insurance coverage, unemployment benefits and re-employment programs, but employment benefits target workers in full-time jobs. The new research shows that involuntary job loss caused by health issues, connected with pre-existing poor health, causes an acute negative health shock and even a more advanced health decline.
"Increasingly, part-time, temporary or short-term service industry jobs are replacing the standard, full-time jobs disappearing from manufacturing and other industries, and the new jobs often lack health insurance coverage or unemployment insurance eligibility. This means that people working part-time or with other nonstandard employment contracts will face the greatest challenges getting back into the labor force if they experience a job loss; they don't benefit from these programs", said Burgard.
"These findings underscore the social and economic importance of structuring health insurance, unemployment benefits, and re-employment programs to meet the needs of an evolving workforce, as nonstandard employment contracts become more common. For example, since health insurance is often tied to full-time, long term employment, the most vulnerable workers in the new service economy have no access to employer-sponsored health care while they are employed. After a job loss for health reasons, such workers would have few resources to aid recover and help with a new job search", she said.
The new research made the difference between health-related job losses and other reasons of involuntary job loss, like layoffs, to assess the impact of involuntary job loss on health.