• About this study
• Our findings
• Our details

Social impacts of the recession

The impact of job loss and job insecurity on social disadvantage

Did you know?

People who lose their job are around three times more likely to experience a common mental health problem than those who remain employed.

from : Social impacts of the recession findings

About this study

The UK began experiencing a deep economic recession in 2008. To reduce its impact on society, policy makers were interested in identifying those who may experience complex and enduring problems during these difficult economic times.

The Social Exclusion Task Force asked NatCen to use secondary analysis research to explore the extent to which people who lose their job and people who feel insecure in their job go on to experience other social disadvantages.

A number of key findings emerged from the analysis, notably that the incidence of job loss and job insecurity appeared lower than in the previous recession. However, both job loss and job insecurity were associated with an increased risk of depression and financial stress.

The evidence illustrates the importance of high levels of social support, good mental health, financial savings and qualifications in protecting people against the negative impacts of difficult economic times. You can read the findings here or download the full report (PDF).

Potential policy impact

We highlighted the social disadvantages that individuals and families can experience as a result of unemployment or job insecurity. So it is imperative that policy aims to prevent and reduce social disadvantage, in addition to containing the purely economic problems that can arise during an economic downturn.

NatCen's research fed into a SETF policy report focused on preventing the recession from triggering long-term social exclusion. This was targeted at individuals on the cusp of developing complex and enduring problems. The Social Exclusion and the Economic Downturn study was published in December 2009 by the Social Exclusion Task Force.

Method

This research used data from the British Household Panel Survey (BHPS), a study uniquely positioned to investigate the economic and social issues from the early 1990s to the present day. Because the BHPS re-interviews the same people at annual intervals, it can be used to track people's outcomes over the longer as well as the shorter term.

To compare the previous and current recessions we focused on data from 1991 and 2008. We also looked at data from 2001 to allow comparison with a year in better economic times.

We identified two groups of employees who experienced employment difficulties:

• Those who had recently lost their job; and
• Those who felt insecure in their job.

We explored whether these people went on to experience a range of social disadvantages, including:

• Common mental health problems over the short and longer-term,
• Financial difficulties over the short and longer-term,
• Eviction or repossession, and
• Relationship breakdown.

We also looked at which groups were more at risk of negative social outcomes as a consequence of the recession. These included:

• Male, low skilled, 16-24 year olds,
• Younger couples with high ratios of debt to income, and
• Older males, who lack transferable skills.

You can:

Of interest: