In the grand tapestry of American life, the threads of economic stability and personal well-being are intricately woven. When those threads are severed by job loss, the resulting unraveling can be both financially and emotionally devastating. The recent actions of the Trump administration, which saw the firing and furloughing of tens of thousands of federal workers and contractors, have cast a long shadow over the lives of those employed in national parks, research labs, and numerous government agencies. As a professor of social work with a focus on the intersection of financial stress and health, I am deeply concerned about the far-reaching health hazards that these individuals may face.

The Economic Fallout and Its Health Implications

Losing a job is more than just a financial setback; it is a seismic shift that can reverberate through every aspect of a person’s life. The immediate economic consequences are stark: a precipitous drop in income, dwindling savings, and the looming threat of missed rent or mortgage payments. The inability to maintain one’s standard of living can lead to a cascade of stressors, each compounding the next. However, my research has revealed a startling truth: the way we perceive our financial situation can have a more profound impact on our health than the financial circumstances themselves.

In a study published in 2023, co-authored with social work scholar Theda Rose, we analyzed data from the 2018 National Financial Capability Study, which surveyed over 27,000 American adults. Our findings were eye-opening. We discovered that how a person felt about a decline in income mattered 20 times more than the actual financial change itself. This insight underscores the critical role that perception plays in determining our health outcomes.

The Power of Perception

The psychological and physical responses to financial strain can vary dramatically from one individual to another. Some may view job loss as a temporary setback, maintaining a relatively calm demeanor and focusing on finding new opportunities. Others, however, may perceive the same event as a catastrophic disaster, triggering intense stress that can spiral into serious health problems such as depression, anxiety, and substance abuse.

This difference in perspective is not merely a matter of personality; it is a crucial determinant of whether someone will suffer significant health problems when faced with job loss or financial hardship. Previous research has typically examined “financial precarity” in either purely technical terms, such as the ability to come up with $400 in an emergency, or in terms of emotional responses, such as persistent worry about finances. Our study, however, revealed that both aspects of financial precarity can profoundly influence health and behavior.

Among the many variables we explored, a decline in income surprisingly contributed much more to worry than the mere inability to pay bills. This distress is not just psychological; it can manifest in physical changes with long-term health implications, such as high blood pressure. The toll on mental health is equally severe. Job loss can lead to anxiety, depression, and lower self-esteem. Interestingly, those who face ongoing financial challenges but manage to stay calm are no more likely to develop depression symptoms than those without any financial stress.

The Dual Impact on Physical and Mental Health

Losing a job can harm the body in two primary ways. First, the stress from financial worries can directly affect physical health, for example, by increasing blood pressure. Being in debt is also associated with other ailments, including back pain and obesity. Second, when money is tight, people often cut corners by skipping doctor visits or forgoing prescription drugs. Even with health insurance, high deductibles can mean paying thousands of dollars out of pocket before insurance kicks in. Faced with the choice between paying for rent, food, and healthcare, many prioritize immediate necessities over medical care.

Some individuals turn to unhealthy coping mechanisms such as alcohol, tobacco, or other substances to deal with job loss. These habits not only harm physical health but can also exacerbate financial strain. Others resort to gambling or excessive shopping, which can further compound their financial woes. The strain of financial stress can also take a toll on relationships. Borrowing money excessively from friends and family or lashing out at loved ones can weaken the very support networks that are crucial during difficult times.

Building Resilience in the Face of Adversity

While the challenges are daunting, there is hope. Some individuals emerge from job loss more resilient by adopting positive coping strategies. When faced with unemployment, it is essential to reach out to friends and loved ones. Social support can act as a buffer against the negative health impacts of job loss. Networking is another vital tool. Former colleagues, professional groups, and career-related events can provide valuable connections and potential job leads. Volunteering not only sharpens skills but also expands networks and can lead to new opportunities.

Starting or expanding a side hustle can generate additional income, provide a sense of control, and maintain productivity during the often-monotonous process of job searching. Self-care is equally important. Regular exercise reduces stress hormones, adequate sleep improves cognitive function, and maintaining social connections provides emotional support. These healthy habits are always important, but they can be particularly protective during challenging times.

Protecting Health Amid Economic Uncertainty

Losing a paycheck is undeniably difficult, but losing one’s health in the process is an even greater tragedy. The Trump administration’s actions have thrust thousands of Americans into economic uncertainty, but it is crucial to remember that our response to adversity can shape our outcomes. By understanding the profound impact of perception on health, adopting positive coping strategies, and prioritizing self-care, we can mitigate the health hazards of job loss. In a world where economic stability is increasingly fragile, our ability to navigate these challenges with resilience and support is more important than ever.