The psychological effects of unemployment: a review of the literature

The literature on the psychological effects of unemployment is reviewed, with particular attention being paid to the somewhat scarce New Zealand literature on the subject. Studies conducted at the macrosocial level are discussed, followed by studies that focus on the individual, with respect to physical health, mental health and psychological well-being, and social attitudes. The differential effect of unemployment on various social groups is examined, and the methodological deficiencies in some of the studies reviewed are summarized. In conclusion, it is suggested that the documented psychological ill-effects of unemployment should make us view rising levels of unemployment with concern.