Unemployment Makes Health Worse. Recession Makes It Better?

February 23, 2016 in Uncategorized

Arrows -- unemployment harms health, recession improves it

Getting laid off, job insecurity, and long-term unemployment are hazardous to your health. So why do health measures for statewide populations tend to improve during economic downturns?

Job loss is associated with a 73 percent increase in mortality risk — the equivalent of adding 10 years to a person’s age, according to a 2014 study from Drexel University. Yet the same study found that  each percentage-point increase in state unemployment rate reduced the mortality risk of a resident of that state by 9 percent, about the equivalent of being one year younger.

In other words…

Joblessness strongly increases the health risk for people who are jobless.

But…

Periods of higher unemployment rates, such as recessions, moderately decrease health risk among the entire population.

What at first seems paradoxical may not be. The significant increase in mortality risk for the jobless is limited to a relatively small population — say, 9% in a typical recession. The improvement in mortality for the population is based on a small improvement spread across a much larger population, which can easily be misinterpreted, if someone were to oversimplify it, to mean that everyone’s health is getting better. (In fact, there undoubtedly are other subpopulations for whom health deteriorates during economic downturns. These may include those living in poverty, people with less access to health care, senior citizens, and less educated people.)

The researchers did not investigate the question of why risk improves for employed people during economic downturns, but they offered a hypothesis:

During economic expansions, work is done at a faster pace, more employees are commuting, workers have less average sleep, and so on — all of which can be linked to higher risk of heart attacks, vehicle crashes, industrial injuries and enhanced circulation of germs. All of this reverses in recessions.

Of course, this leaves us with a damned-if-you-do-damned-if-you-don’t scenario. Joblessness is harmful to your health — but hard work is also harmful and less work is the cure? This wouldn’t even begin to explain the bi-directional changes in mortality risk for the employed and the unemployed. And it neglects to factor in how job insecurity — which presumably increases across a wide swath of the population when unemployment rates spike — factors into population health shifts.

We still have a lot to learn about where the sweet spot lies for employment, productivity, and worker health. Ultimately, we get on the right track by asking the right questions.

Getting Axed Is Hazardous To Your Health

February 4, 2016 in Uncategorized, Stress, job strain

You look to your job not only for income and benefits, but also for purpose, social interaction, and daily routine. These influence your health, and the loss of them — or the threat of losing them — can suck the life right out of you.

Every day, millions of Americans either look for work or go to work. Their success at finding and/or maintaining a decent job with good benefits will, to a large degree, determine their current and future health.

Robert Wood Johnson Foundation

Job loss, long periods of unemployment, and job insecurity have all been linked to deteriorating health. Yet, even companies that profess to support employee well-being have been known to contradict themselves by executing mass layoffs as a first line of financial defense rather than a last resort.

Netflix Do-or-Die Culture Deck

The Netflix exec who masterminded the vaunted slide deck about the company’s do-or-die culture boasted about the workers she’d laid off and fired. After being let go in 2015, she “doesn’t like to talk about it.”

As a business strategy, layoffs are a proven fail, a formulaic tactic executed by complacent executives in the absence of genuine leadership skills. Though frequently assumed to be a desperate measure, corporations often lay off workers when business is booming.

Of course, layoffs aren’t the only source of unemployment and job insecurity…

  • Workers get fired due to performance problems.
  • Businesses go belly-up.
  • Some employers foster job insecurity as an ill-fated method to drive productivity.

But mass layoffs — regardless of whether they are euphemistically called reductions-in-force, redundancies, right-sizing, down-sizing, or all-around-the-town-sizing — are responsible for the majority of job loss that is out of workers’ control.

Job Loss and Health

Compared to employed workers, people who have recently lost a job are…

Unemployment and Health

According to Gallup, Americans who have been unemployed for a year or more are more likely to be obese than those unemployed for a shorter time. The obesity rate rises from 22.8%, among those who have been jobless for less than three weeks, to 32.7% among those unemployed for a year or more. Those who have been jobless for more than 26 weeks are twice as likely to have high blood pressure and high cholesterol compared to people who have been unemployed for shorter periods.

Gallup also found that 20% of people unemployed for a year or more suffer from depression — about twice the prevalence compared to people unemployed for less than six weeks.

The Robert Wood Johnson Foundation points to several pathways from unemployment to deteriorating health:

  • Reduced income, which leads to inadequate nutrition, shelter, and health care.
  • Increased stress and limited access to the physical, mental, and social activity that are underpinnings of well-being.
  • Increased likelihood of engaging in unhealthy behaviors, like alcohol consumption, smoking, and drug use.

Job Insecurity and Health

The jury is still out on whether job insecurity — the threat of involuntary job loss — causes measurable declines in health status, but plenty of studies suggest a connection.

Job insecurity harms health, even more than unemployment.

The World Health Organization

One of the largest investigations of job insecurity and health analyzed data from more than 174,000 workers who were studied for nearly 10 years. It found that workers with job insecurity were 20% more likely to experience life-threatening heart disease compared to others who felt their jobs were a lock.

Research also has found that chronic job insecurity is a strong predictor of deteriorating health, even stronger than smoking or high blood pressure.

Job insecurity can lead to unhealthful behaviors like smoking, a Canadian analysis concluded, and avoidance of healthy behaviors like exercise and taking needed vacation and sick time off. It may even increase the risk of work-related injury and illness.

The relationship between job insecurity and health may depend on job type, economic conditions — how readily a laid off worker can land a new job — and workers’ attitudes about their employment and health. Case studies suggest that availability of social support and services for laid off workers may be differentiators for wellbeing.

Real Leaders Lead: Alternatives to Layoffs

Honeywell CEO Dave Cote doesn’t have a perfect record when it comes to worker well-being,  but his decision to favor furloughs over layoffs during the Great Recession serves as a Harvard Business School case study on how to maintain competitive edge during economic downturns and recoveries. Cote’s process should be required reading for execs who succumb to arguments that layoffs are inevitable.

The benefits of using layoffs to manage costs during a recession didn’t make economic sense…

Harvard Business School

The Wall Street Journal offers a tip sheet suggesting alternatives to layoffs.

Lessons about support for laid off workers also can be learned from the Unnatural Causes video comparing Electrolux layoffs in the US and Sweden and the Nokia Bridge program that granted seed money to laid off workers in Finland.

For workers in America, if you worked at a company like General Electric it’s more like you get a month’s salary and go. They lock the doors on the day you are fired. At Nokia there were people who knew they were going to be laid off in six months and  were able to stay at Nokia with a Nokia email address with the Nokia laptop and spend time applying for new things, and Nokia helped them.

— Ari Tulla, laid off Nokia employee, now co-founder and CEO of BetterDoctor (quoted by BBC)

In a separate post, we’ll explore what we know about the relationship of health and on-demand or “gig” economy jobs, like Uber drivers, Airbnb hosts, Postmates couriers, and TaskRabbit taskers.

 

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