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Factors facilitating adjustment to unemployment: Implications for intervention

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Abstract

Conducted a community survey in the Fall of 1984 in a sample of high unemployment blue-collar census tracts in southeastern Michigan. Results of earlier analyses using these data showed that involuntarily unemployed workers had significantly elevated levels of depression, anxiety, somatization, and self-reported physical illness relative to a stably employed comparison group (Kessler, House, & Turner, 1987). Results presented in this paper document that this relationship is modified by social support (as measured by social integration and the availability of a confidant), self-concept, and various coping processes. Further analyses allowed us to determine the way in which these modifiers operate. The modifying effects of social support and coping operate primarily by buffering the impact of unemployment-related financial strain on the health outcomes. Self-concept operates primarily by attenuating vulnerability to other stressful life events. The implications of these results for the design and implementation of preventive interventions are discussed.
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... Factors associated with job insecurity range from individual characteristics (e.g., personality traits, educational attainment, age and gender) to macroeconomic factors such as unemployment levels or changes in employment status (De Witte et al., 2016;Erlinghagen, 2008). Job insecurity has been found to be associated with the experience of financial stress (Turner, Kessler, & House, 1991); however, causality is difficult to assume. It is possible that financial stress makes job insecurity a more excruciating experience, which in turn exacerbates the financial stress (Gaunt & Benjamin, 2007;Turner et al., 1991). ...
... Job insecurity has been found to be associated with the experience of financial stress (Turner, Kessler, & House, 1991); however, causality is difficult to assume. It is possible that financial stress makes job insecurity a more excruciating experience, which in turn exacerbates the financial stress (Gaunt & Benjamin, 2007;Turner et al., 1991). ...
... Although in economic scholarship intense discussions have ensued about labour market changes and job insecurity (Ferrie et al., 2001), few studies have investigated the association between the job insecurity and individuals' financial well-being and related financial stress, and the correlations range from nonsignificant (e.g., Gaunt & Benjamin, 2007) to significant (e.g., Turner et al., 1991). Hence, the interplay of job insecurity, financial well-being and financial stress requires further and more nuanced investigation. ...
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This study proposed a nuanced approach to the association between job insecurity and financial stress by examining whether financial well‐being mediates the established association. Additionally, we examined whether the association between job insecurity and financial stress, through financial well‐being, is moderated by income. For this study, we conducted a path analysis using 1,145 survey respondents. Results revealed a significant relationship between job insecurity and financial stress and a partial mediation effect of financial well‐being. Moreover, the indirect effect of job insecurity on financial stress through financial well‐being was moderated by income. Although people who have higher financial well‐being were more likely to have lower financial stress, this relationship varied by income such that it was stronger for higher‐income groups than for lower‐income groups. Our findings provide insights into the way job insecurity and financial well‐being influence financial stress. This study will help researchers and practitioners develop more effective and adaptive intervention programmes and resources for individuals and families. Implications for practice and directions for future research are discussed.
... However, in other comparisons of reemployment, Burke (1986) found differences in well-being by whether employees found jobs with similar wages, working hours, and other employment characteristics associated with job satisfaction. In a discussion of these issues, Turner, Kessler & House, (1991) speculate that work conditions may lead to a loss of well-being. "If a consistent pattern of deskilling continues over the remainder of this century, as some have suggested, then a new kind of job loss will become increasingly common, with workers being retrained to take on jobs that are less rewarding than their previous jobs" (Kessler, Turner, & House, 1989, p. 654). ...
... Briar (1988) concurred with this finding in her study of unemployed workers, noting that without an economic cushion of some kind, workers may plummet financially. Financial distress is clearly related to several indicators of emotional distress, including depression, anxiety, somatization, and self-reported physical problems (Vosler & Page-Adams, 1996;Turner, Kessler & House, 1991), as well as the quality of marital and family relationships (Conger & Elder, 1994;Perrucci & Targ, 1988;Voydanoff & Donnelly, 1988). ...
... Though significant improvement has been created in recent years in the understanding of the effects of job insecurity on wellbeing, stress, and health [10,19], it is still challenging to determine causality. The strain of financial needs on a family, such as paying for necessities, education, bills, and healthcare, can worsen the reactions of job insecurity and increase financial difficulties [38,51]. Several studies have looked into the connection between job insecurity and financial wellbeing and the stress levels of employees, with some finding significant effects [51] and others finding no significant impact [38]. ...
... The strain of financial needs on a family, such as paying for necessities, education, bills, and healthcare, can worsen the reactions of job insecurity and increase financial difficulties [38,51]. Several studies have looked into the connection between job insecurity and financial wellbeing and the stress levels of employees, with some finding significant effects [51] and others finding no significant impact [38]. ...
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Many people are experiencing a lack of confidence in the security of their employment due to the COVID-19 pandemic, particularly employees in the tourism sector, which has caused adverse effects on their mental health. These adverse effects involve the management of stress, anxiety and depression, that may arise from the demands of the industry. However, few studies have explored how insecurity in the workplace and financial pressure from families affects mental health and can intervene in these relationships. In this study, the aim was to investigate job insecurity as an antecedent of employees’ mental health and family financial pressures as a moderator using a sample of 475 hotel and travel industry employees. The theoretical background of the study was built upon the theories of resource conservation and effort–reward imbalance. The participants completed an online survey that measured job insecurity, family financial pressure, depression, anxiety, and stress. The collected data were subjected to PLS-SEM data analysis. The findings of this study reveal that job insecurity had a significant influence on depression, anxiety, and stress among tourism employees, and family financial pressure worsened the negative consequences of job insecurity on mental health. This research highlights the significance of addressing the mental health of employees in the tourism sector after the COVID-19 pandemic, as well as the crucial role played by family financial pressures. The findings of this study highlight the importance of addressing job insecurity in the tourism industry and its impact on employees’ mental health. This could involve implementing policies and practices that enhance job security, such as providing more stable work schedules, better benefits packages, and greater opportunities for professional development. The results also underscore the need to take into account the role of family financial pressure in moderating the impact of job insecurity on mental health. Practitioners and policymakers in the tourism industry should consider ways to alleviate financial pressure on employees and their families, such as offering assistance programs, flexible work arrangements, and supportive company policies.
... Extant literature includes approaches to financial stress as either an antecedent or a consequence of financial well-being (Nanda and Banerjee, 2021) . In the context of job security and employment status, several studies have found that an individual's financial well-being is significantly associated with financial stress (Turner et al., 1991), while some others found that the concepts are not significantly related (Gaunt and Benjamin, 2007). Therefore, the association between financial well-being and financial stress calls for a more in-depth investigation. ...
... The current study adds to the extant and growing literature on financial wellbeing by demonstrating the moderating role of gender in the significant association between financial well-being and financial stress. At the same time, our results are in correspondence with the small body of previous research on citizens' financial well-being and stress (Choi et al ., 2020;Turner et al ., 1991;Utkarsh et al ., 2020), especially in the context of a developing economy affected by terrorism and political insecurity. We have demonstrated the strong relationship between financial wellbeing and financial stress, which has been generally overlooked in the literature, as a progression of previous research . ...
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The study aims to investigate the relationship between financial well-being and financial stress while examining the moderating role of gender. The study uses a survey method, and data were collected in Kashmir Province of Jammu and Kashmir, northern India, from 168 respondents selected on a convenience sampling basis. The results strongly supported the hypothesised model and have put forth evidence that financial well-being has a negative impact on financial stress and that this relationship is moderated by gender. The study has important implications for academia, future researchers, governments, and policymakers aiming at improving their citizens’ quality of life, health, and well-being, a key sustainable development goal, and the ultimate goal of the Transformative Consumer Research Agenda.
... Despite the significant increases in recent years in our knowledge of the influence of job instability on health, stress, and well-being [45,46], causality is hard to be presumed. Financial pressures are likely to make job instability more painful, which in turn provokes financial pressures [47,48]. A limited number of studies have examined the link between job instability and employees' financial well-being and related financial pressures. ...
... A limited number of studies have examined the link between job instability and employees' financial well-being and related financial pressures. The impacts found to range from significant [48] to nonsignificant [47]. As a result, the interaction between job instability and financial pressure may require more research. ...
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The economic disaster precipitated by the pandemic of COVID-19 changed people’s perceptions of ordinary job stability and elevated it to an ultimate high level. To avoid being laid off, employees who are concerned about job stability may engage in unethical activities in the name of their employer. In this study, the influence of job instability on unethical organizational behaviour (UOB) was investigated through the mediating role of family financial pressure and distributive injustice. Perceptions of 830 employees working in hotels (5-star and 4-star) and travel agencies (Category A) were explored and further analyzed using structural equation modelling. The results asserted that family financial pressure and distributive injustice partially mediated the effects of job insecurity on UOB. Important insights on theoretical and practical implications were further deliberated towards the end of this study.
... nt refers to a person's emotional response to insecurity evaluations (Anderson & Pontusson, 2007). Instability factors range from individual characteristics (e.g., personalities, education, gender, and age) to macroeconomic factors like unemployment or employment (Witte, 1999). Job insecurity and food insecurity was related to financial stress (J. B. Turner et al., 1991), which significantly influence the behavior of financial management. Financial stress can increase job insecurity, which aggravates financial stress (Gaunt & Benjamin, 2007;J. B. Turner et al., 1991). Despite intensive discussions regarding shifts in the labor force and insecurity in the economic study (Ferrie, 2001). Few studies have e ...
... and age) to macroeconomic factors like unemployment or employment (Witte, 1999). Job insecurity and food insecurity was related to financial stress (J. B. Turner et al., 1991), which significantly influence the behavior of financial management. Financial stress can increase job insecurity, which aggravates financial stress (Gaunt & Benjamin, 2007;J. B. Turner et al., 1991). Despite intensive discussions regarding shifts in the labor force and insecurity in the economic study (Ferrie, 2001). Few studies have explored the relationship between job insecurity and adults' financial well-being and associated financial stress (Gaunt & Benjamin, 2007;J. C. Turner, 1991). Therefore, a more complex investigation is ...
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The purpose of this research is to look into financial management behavior during the COVID‐19. Without a doubt, financial knowledge is an important, but in the COVID‐19, the majority of people are experiencing economic insecurity, which is regarded as unique contribution when testing financial management behavior. Furthermore, Pakistan is an Islamic country, so, financial knowledge, is further subdivided into objective, subjective, and Islamic financial knowledge, with financial wellbeing serving as mediating variable. Pakistan has a diverse population of respondents, this model was tested on university students in Pakistan between the ages of 20 and 40, with the majority of respondents experiencing job and food insecurity as a result of COVID‐19. The research employs a two‐stage method, PLS‐SEM, for reliability checking via composite reliability and average variance extract, and discriminant validity checking via HTMT ratio. According to the findings, Islamic financial knowledge as positive, and other financial knowledge as negative, and economic insecurity (food and job insecurity) also has negative and significant impact on students' financial management behavior. Financial well‐being significantly acts as a bridge between independents and dependent variables. The findings imply that financial knowledge has a significant impact on financial management behavior. Policymakers and administrators should improve information disclosure while promoting financial education in order to foster trust and responsible financial conduct among people.
... Furthermore, long term unemployment can modify the way the unemployed explain its causes, producing more fatalistic explanations (Hayes & Nutman, 1981). Further research (Turner, Kessler, & House, 1991;Waters & Moore, 2001, 2002 has shown that self-esteem is also affected by long-term unemployment although this seems to vary across educational levels, being a function of baseline levels of self-esteem as well. Locus of control is another related factor which can offer explanation mechanisms to the unemployed as they may adopt internal locus of control explanations for unemployment. ...
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Explanations for Unemployment have been studied through a 20-item scale created by Furnham (1982) on three theoretical dimensions: the individualistic, the societal, and the fatalistic. In this study we revised this scale to co-ordinate it with contemporary social and economic facts and through metric testing-adjustments and multivariate statistical analysis we arrived at a 19-item scale retaining eight of the original scale items. This revised scale was statistically and theoretically valid as its factor structure closely resembled the original factor structure Furnham had described. For the second stage of the study, data were collected from eight countries and multilevel covariance structure analysis was applied to the data pool. The final structure can be considered universal for seven of these countries, meaning that the structure people employ to explain unemployment is the same across countries. The individualistic factor was clearly supported in this structure. The second factor narrowed the societal spectrum to industrial management and educational provision and the third factor appeared as a transformation of the fatalistic dimension to a “helplessness” factor. The three factors were investigated for their scoring differences across countries and overall.
... Natural environment perception Social cognition theory Peng and Zhou, 2001;Liu, 2021 Social environment perception Social cognition theory Craik, 1972;Guo et al., 2015;Wang and Wu, 2015;Ruan, 2020 Personal norm Theory of planned behavior Norm activation theory Value-belief-norm theory Ajzen, 1985;Cialdini et al., 1990;Wang and Wu, 2015;Zhang, 2016 Social norm Theory of planned behavior Ajzen, 1985;Turner et al., 1991;Nolan, 2008 Participation attitude Theory of planned behavior Shaw et al., 2000;Daniel and Klaus, 2022 Result awareness Value-belief-norm theory Schwartz, 1980 Self-efficacy Theory of planned behavior Social cognition theory Bandura, 1977Bandura, , 1982Ajzen, 2002 Participation behavior intention Theory of planned behavior Norm activation theory Schwartz, 1980;Ajzen, 1985 environment can trigger two forms of environmental behavior: the personal form, as reported by Lin et al. (2017); Xiu (2021), and Ying (2021), and the social form, which includes participation in social environmental protection organizations (Armitage and Conner, 2001;Berenguer, 2010). This study follows the aforementioned research, subdividing the PD of villager participation in rural micro-landscape construction into NEP and SEP. ...
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... Employees as well as their families face financial difficulties as a result of the high percentage of job insecurity [43]. Despite remarkable advances in our understanding of the impact of job insecurity on well-being, stress, and health over the last several years [30,44], it is difficult to infer causality. Financial stress on the family (i.e., related to satisfying basic needs, family education cost, utilities payments, or family healthcare expenses) is likely to exacerbate job insecurity, which in turn leads to financial pressure [45,46]. ...
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In organizations, unethical behaviors are pervasive and costly, and considerable recent research attention has been paid to various types of workplace unethical behavior. This study examines employees’ behaviors that are carried out for the benefit of one’s family but violate societal and organizational moral standards. Drawing upon the self-maintenance and bounded ethicality theories, this study examines the engagement of unethical organization behaviors (UOB) in the name of the family during the COVID-19 pandemic. It examines the influence of job instability and the mediating role of family financial pressure and family motivation. A total of 770 employees in hotels and travel agents in Egypt were targeted, and the data were analyzed using structural equation modeling. The results posit that perceived risk of job insecurity predicts engagement in unethical organizational behaviors, while intentions of UOB increase by high family motivation and financial pressures. Toward the end of this paper, a discussion on the theoretical and practical implications and are presented.
... As of March 2021, there were approximately 30 million confirmed cases and over half a million deaths attributable to COVID-19 in the USA. The impact of COVID-19, and other societal health shocks, extends beyond morbidity (Gaunt & Benjamin, 2007;Turner et al., 1991). Millions of people are now experiencing unprecedented level of stress as they struggle to manage jobs, health, caregiving, and education amid great economic uncertainty (Fox & Bartholomae, 2020). ...
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This paper documents the effect of the COVID-19 pandemic on the use of profession financial advisors across a broad sample of financial decision makers (N = 16,431). Findings show that financial literacy played a significant role in describing the use of financial advisors in the USA before and during the pandemic. Those who exhibited higher levels of financial literacy were more likely to use the services of professional financial advisors. Based on a series of regression tests, it was determined that the effect of COVID-19 on the use of financial advisors was, to some extent, moderated by financial literacy.
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This paper examines methods of decomposing a difference in levels between groups for a dependent variable such as income. Applied to regression equations, this technique estimates the contribution to the difference from divergent characteristics and divergent rates of converting characteristics into the dependent variable. The consequences of an "interaction" component being present in the decomposition is examined. The paper, using data from the 1960 Census, shows how ignoring the interaction term can influence results. Peer Reviewed http://deepblue.lib.umich.edu/bitstream/2027.42/68707/2/10.1177_004912417500300306.pdf
Thesis
Surveys that have studied the health effects of unemployment have pervasively ignored two important issues. First, they have generally confined their attention to the individual worker, failing to recognize unemployment as a family-level problem. Second, they usually fail to consider the economic context in which job loss occurs. The Health Insurance Experiment (HIE), included a five-wave, panel survey that interviewed every member of each selected family between the ages of 14 and 61 (n = 5,296). Thus, it was possible to assess the mental health impact of job loss on the spouses and children of unemployed workers. People who lost their jobs, and the spouses of people who lost their jobs, experienced substantial elevations in symptoms of depression and anxiety. Subgroup differences in these effects indicated that unemployment was more than a strictly financial concern. No significant effects were observed among children whose parent(s) lost their job. The 1986 Americans' Changing lives study, collected a national probability sample with wide variability across socioeconomic status and geographic area. Analyses compared the effects of current and previous unemployment on depression and subjective physical health status, across levels of educational attainment and available employment opportunity (n = 1,252). Current unemployment had the strongest effects on individuals with low levels of educational attainment. Residual effects of previous unemployment, however, were found only among people with at least some college education. These effects were further specified by the community economic context. People with low levels of education were the most affected by current unemployment when the area unemployment rate was high. This interaction was not observed among the well-educated people. The residual effects of previous unemployment among the well-educated were the strongest within economically prosperous contexts. The findings are interpreted in terms of the two major categories of unemployment-related stress: financial strain, which is thought to be more salient for people in lower socioeconomic statuses, and diminished sense of self-worth, which is thought to be more characteristic of higher status people because they tend to have greater personal investment in their work. Attempts to intervene so as to minimize the health effects of unemployment are also discussed. The components of a successful intervention will vary depending upon the target population and the current economic situation in the community.
Chapter
The recent surge in unemployment levels has been accompanied by an increase in research interest in a topic which has otherwise been largely neglected since the 1930s. Some of the new studies of unemployment are at an aggregate level, examining relationships between national or local economic conditions and aggregate data, for example, in terms of mortality rates or hospital admissions for the community as a whole (e.g., Brenner, 1980; Catalano, Dooley, & Jackson, 1981). Other investigations are at the individual level, examining the experiences of job loss and unemployment among those who have actually made the transition from paid employment into unemployment.1
Chapter
This chapter investigates how individuals react when they are unable to exert control over their environment—when they are unable to have options or reach goals that are important to them, or when they are forced to endure outcomes that they would not voluntarily choose. It reviews a number of theories that have focused on the importance of control over one's environment. Some investigators have suggested that the perception of inability to exert control over one's environment can even result in sudden death from coronary disease or other factors. Furthermore, feelings of lack of control have also been viewed as a cause of many types of antisocial behaviors. There are two theories that make rather specific predictions concerning reactions to lack or loss of control: Brehm's theory of psychological reactance and Seligman's learned helplessness model. The chapter discusses these theoretical orientations in some detail. Because these two formulations appear to make contradictory predictions, it attempts to integrate them into a single theoretical statement. The chapter also reviews the relevant evidence, and discusses a number of unresolved theoretical problems.
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