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The impact of job acquisition on economic deprivation and psychological distress

Prof Tony Machin and Dr Nancey Hoare

University of Southern Queensland

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What is it like to be unemployed?

Comments from a 47 year old female: After approx. 8 months of unemployment, I

was finally able to secure a really great job, nothing too stressful, but kept me busy and I loved the work. I had great feelings of confidence, could hold my head up higher, was taking more pride in my appearance and felt like a lot of weight had been lifted off my shoulders - all because I had a job!!

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Unfortunately, I am no longer working because the excuse was "overstaffed!" and because I was the last employed, I was 1st let go. Do you know how demoralising that was? I felt crushed and winded, like someone had kicked me in the guts. I was extremely upset and distressed, wanted to go out and get drunk and stoned, but of course I can't afford to and anyway that wouldn't solve things. But I've got back up again and although still not working, I'm not giving up. As we say in my country "KIA KAHA - meaning BE STRONG!!" + I know, I am strong. I will be strong and I can be strong!!

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Background to this study

A series of papers have been published with Dr Nancey Hoare.

Hoare and Machin (2006) focused on the predictors of psychological distress in a sample of unemployed

Hoare and Machin (2009) explained the role of leisure activities which serve as a useful and psychologically healthy way of coping with unemployment

Hoare and Machin (2010) highlighted the impact of reemployment on access to both the latent and manifest benefits of employment, and mental health

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Hoare and Machin (2010) demonstrated that unemployed people who gained employment were better off financially, reported greater access to social contact and time structure and had significant improvements in their mental health after reemployment

There are still several unresolved issues relating to the impact of reemployment and the role of economic deprivation

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Economic deprivation

David Fryer (1986) proposed that unemployment leads to economic deprivation which places restrictions on the unemployed individual‘s ability to exercise personal agency making it difficult to plan and organise a meaningful future

Many researchers have shown that unemployed individuals report significantly more financial strain

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Latent and Manifest Benefits

Muller, Creed, Waters and Machin (2005) developed and tested six scales to assess the latent and manifest benefits (LaMBs) of employment (time structure, enforced activity, social contact, collective purpose, status, and financial strain)

Financial strain is a six item measure that assesses the person’s appraisal of their level of financial difficulties

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Items assessing Financial Stain: My income usually/rarely allows me to socialise as

often as I like I often/rarely have enough money to buy treats for

myself My income usually/rarely allows me to do the things I

want My income does/doesn’t restrict me from living as well

as my friends From the income I receive I often/rarely have money

left for savings My level of income usually/rarely allows me to make

plans for the future

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Using the LAMBS, Muller, Creed, and Francis (2004) reported significant correlations between the latent and manifest benefits and psychological distress, with financial strain having the strongest relationship (r = .37)

The strongest predictor of psychological distress was financial strain (β = .25) followed by social contact and time structure (β = -.21 and β = -.16, respectively)

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Research questions

This study examined cognitive appraisals of relative levels of economic deprivation (financial strain and financial hardship). These are not the same as actual or absolute levels of economic deprivation.

We examined the relationships between latent constructs representing economic deprivation and psychological distress in a sample of unemployed Australians.

We examined the impact of job acquisition on latent constructs representing economic deprivation and psychological distress and assessed the magnitude of these effects

We examined the impact of age on job acquisition

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Methodology

See Hoare and Machin (2010) for complete details

115 unemployed participants in South East Queensland, Australia, completed two paper-and pencil surveys administered 6 months apart that included measures of financial hardship, financial strain, access to the latent benefits (collective purpose, social contact, status, enforced activity, and time structure), and mental health (as measured by the GHQ-12 and NA)

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Demographic details

Age Groups Time 1 Time 2

16 to 25 years 132 32 25 to 34 years 80 15 35 to 44 years 64 21 45 to 65 years 95 47 Total 371 115

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Net fortnightly Time 1 Time 2

income $0 to $310 93 21 $311 to 364 89 13 $365 to $420 100 18 $421 and over 89 63 Total 371 115

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Who was working at Time 2?

Not working 57 (M = 29, F = 28) Working 58 (M = 30, F = 28) Total 115 (M = 59, F = 56)

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Previous findings

It was clear that there is a positive impact of reemployment with at participants who gained employment having significantly reduced levels of financial hardship and financial strain, better access to social contact, better access to time structure, and better mental health (GHQ scores declined).

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(Re) Analysis

The focus of this re-analysis was to assess how the two latent constructs were related across time and the impact of reemployment on these latent constructs.

A SEM was specified with two latent constructs (economic deprivation and psychological distress)

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Relationship of economic deprivation to psychological distress

A SEM for just the T1 latent constructs was specified in order to examine the relationship between economic deprivation, psychological distress and age.

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The impact of job acquisition

A SEM was specified that linked each of the T1 latent constructs with its respective T2 latent construct

A binary predictor variable representing T2 employment was also included to capture the impact of becoming employed (0 = not reemployed and 1 = reemployed)

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Predictors of Job Acquisition

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Conclusions

These results are important as the level of economic deprivation is only moderately associated with levels of psychological distress at Time 1 and has no direct links to levels of psychological distress at Time 2.

Gaining a job substantially reduced the level of economic deprivation at Time 2.

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Age is positively related to levels of economic deprivation at Time 1 and is a negative predictor of likelihood of acquiring a job.

Unemployed adults are vulnerable to having elevated levels of psychological distress and greater economic deprivation whilst older adults are particularly at risk.

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Possible avenues for further research

Income may be a moderating variable (the absolute level of economic deprivation may be a factor in determining the impact of reemployment).

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A cautionary note

Blustein, Medvide and Wan (2011) warn against adopting policies and practices that further marginalise those who are unemployed.

There are important attributes and identities may need to be recognised such as race, ethnicity, and socioeconomic status.