Unemployment is linked to mental and physical health, and increased outpatient hospital visits, researchers at Academia Sinica and the University of Missouri said in a collaborative study that was published in this month’s Volume 238 of the Economic Letters journal.
The study used Ministry of Health and Welfare data from 2002 to 2017 to track income and National Health Insurance activity.
The anonymized data covered 29,500 individuals dismissed from their jobs, 9,700 who lost their jobs because of a manufacturing plant closure and 332,700 with stable incomes.
Photo: Taipei Times
Those who lost their job showed an average decrease in income of 67 percent, with most unable to recover within a decade, the data showed.
Most academics believe that people who lose their job return to a similar income level in a short time, said Yang Tzu-ting (楊子霆), the lead author of the paper, titled “Long-term effects of job displacement on earnings and mental health: Evidence from population-wide administrative data.”
However, the research showed that such assumptions are probably wrong, as people were unable to recover from the loss of income for up to a decade, Yang said.
The research used data from people who lost their jobs due to closures or layoffs, as those situations mean age or ability were not factors, he said.
People who lost their job tended to face mental health issues in the long term, with the data showing that they reported 15 to 16 percent more outpatient visits, he said, adding that they also tended to incur 52 to 67 percent more in medical costs.
The effects of mental stress are more apparent among low-income families, men and elderly people, Yang said.
The government policy of paying 60 percent of the salary for people who lose their job for six to nine months, depending on their age, should be boosted, Yang said.
People without a job should attend vocational training to increase their chances of finding work, he added.
Chang Chia-ming (張家銘), a doctor in the department of psychiatry at Chang Gang Memorial Hospital’s Linkou branch, said that most unemployed people are in the so-called “sandwich generation,” those who have elderly parents and also provide for their own children.
If they are unable to find a job, they are susceptible to self-doubt or blaming others, Chang said, adding that people who have been unemployed for a long time and are facing emotional stress should seek professional psychiatric help.
Unemployed people should try a new vocation, such as delivery work, rather than remain jobless, Chang said.
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