Stressors associated with unemployment include financial hardship, loss of identity, loss of social and family support, and stigmatization. Additionally, the process of searching for a job can cause as much stress as working in a poor work environment.

University of Virginia, Charlottesville

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Unemployment has significant negative effects on mental well-being, often leading to substance use, lower self-esteem, and a general decline in mental health. Conversely, employment can have positive therapeutic effects, including reduced psychiatric symptoms and higher life satisfaction. This may explain why individuals with mental illness often show a strong desire to work.

Psychological and Social Impact of Unemployment

Kerr, J. L., Dattilo, J., & O'Sullivan, D. (2012). Use of recreation activities as positive coping with chronic stress and mental health outcomes associated with unemployment of people with disabilities. Work, 43(3), 279–292. https://doi.org/10.3233/wor-2012-1390

Use of Recreation Activities as Positive Coping with Chronic Stress and Mental Health Outcomes Associated with Unemployment of People with Disabilities Reference

A supported employment approach, is based on seven ideas:
- Spotlight on open employment (a job that exists not solely for people with disabilities)
- Eligibility is based on how the individual perceives their skills 
- Quick job search 
- Attention to individual preferences 
- Individualized and long-term supports 
- Employment and treatment specialists working together with client
- Counseling provided through disability benefits 

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