Stepping into adulthood during a recession: Did job losses during the Great Recession impact health of young adults?

Abstract

Its devastating consequences affected the lives of many, but one group that was disproportionately impacted were the young adults, individuals between the ages of 18 and 27. While the unemployment rate reached a peak of 10% in 2009 for the overall U.S. labor force, the peak unemployment for young adults was much higher at around 19% (Cunningham, 2018;Labonte, 2010). Individuals who were young adults during the Great Recession form a core part of the millennial generation, which is currently the largest generation in the U.S. labor force and the U.S. population (Fry, 2018.In addition to being a key part of the U.S. population, young adults face challenges distinct from those faced by older adults, children, and adolescents (Park et al., 2014). 1 Young adulthood is both a critically formative and a vulnerable part of an individual's life as they leave the safety net of their parents to start living independently, forming families, and commencing their career paths. When the recession hit, young adults in this crucial stage made major life adjustments that were different from other adults, such as having fewer births (Alam & Bose, 2020) and lower homeownerships (Myers et al., 2020).

The Mental Cost of Job Loss: Assessing the Impact on Young Adults in Vietnam

“…Lastly, we find that the increase in anxiety is only significant among those no longer living in their natal household (estimated at 12.0 ppts, a 0.49 SD increase), but not among those still living with their parents. This finding is in line with Alam and Bose (2022), who conclude that job loss among young adults in the U.S. during the Great Depression only led to a deterioration of mental health when they were living independently, but not when they were still living with their parents.…”

“…The first relies on longitudinal data to estimate fixed effects models that account for time-invariant heterogeneity (e.g., Björklund, 1985;Charles and DeCicca, 2008;Clark et al, 2001;Green, 2011;Kassenboehmer and Haisken-DeNew, 2009). The second strategy explores exogenous variation in employment from mass lay-offs during recessions, plant closures, and other large-scale employment reductions (e.g., Alam and Bose, 2022;Browning and Heinesen, 2012;Currie et al, 2015;Eliason and Storrie, 2010;Farré et al, 2018;Kuhn et al, 2009;Marcus, 2013) Even less is known about the effects of job loss on the mental health of young adults, despite young adulthood being a particularly vulnerable phase . Often this is the time when they leave the safety net of their natal household, start living independently, and try to establish a career (Sawyer et al, 2018;Walker-Harding et al, 2017).…”

“…Novo et al (2000Novo et al ( , 2001 document a negative association between unemployment and mental health among young adults in Northern Sweden, but the authors use cross-sectional data and are thus limited in controlling for endogeneity concerns. Alam and Bose (2022) examine the impact of job losses during the Great Recession on the mental health of young adults in the United States, finding that job loss among those living by themselves led to increased mental health problems.…”

Educational Expectation-Attainment Gaps and Mental Health over the Early Adult Life Course

“…More plausibly, changes in the labor market between waves 3 and 4 could have heightened the importance of high expectations, optimism, and similar predispositions for mental health. The labor market was less welcoming of college graduates during the Great Recession, and the level of mental health problems among young adults increased (Alam and Bose 2022; Aronson, Callahan, and Davis 2015). Youth who were able to maintain optimistic orientations during that time were less likely to experience unemployment (Vuolo, Staff, and Mortimer 2012) and may, as a result, have experienced lower levels of depression and perceived stress.…”

Exploring the relationship between unemployment perception and health during COVID-19: a comparative study of rural and urban adults in China

“…The relationships between economic condition and health outcomes vary by the type and severity of economic slump, cultural backgrounds, geographic aggregation, and population groups (Ruhm, 2000 , 2005 ; Janet et al, 2015 ; Alam and Bose, 2022 ; Belotti et al, 2022 ). Some studies find that higher unemployment rates during business cycle fluctuations are associated with better health outcomes, such as lower mortality risk, reduced smoking, and decreased obesity prevalence.…”