Psychological Effects of Unemployment: A Consideration of Some Alternative Explanations

Abstract

This review of psychological research into unemployment (concentrating on young adults) contrasts two different hypotheses about the possible processes by which unemployment may affect such variables as self esteem and locus of control. The first hypothesis, identified as the skill utilization hypothesis, emphasises the contribution of work to the development of a stable self concept and internality in young persons. Thus the emphasis is on the developmental function of work rather than on the effects of unemployment and the suggestion is that the essential requirement for coping with unemployment is the provision of 'growth promoting' skill utilising opportunities. The alternative, social rules hypothesis, on the other hand, identifies the lack of fit between people's values and expectations and their unemployed situation as the cause of social disorientation, and psychological impact. The role of social support as a coping mechanism is considered and it is suggested that these two hypotheses may have complementary implications for coping with unemployment. It is recommended also that research in this area examine the ways in which the unemployed role interacts with other life roles in peer, family, leisure and citizen settings rather than treating unemployment in isolation.