Unemployment at 50+: Economic and Psychosocial Consequences

Abstract

Throughout the lifespan, unemployment has severe consequences in terms of economic exclusion, and overall social exclusion, but is compounded in older age. Within the EU, a growing number of older adults (50+) are affected by joblessness. Job loss at a later stage in a professional career may determine an early and permanent exit from the labour market with significant psychosocial consequences. Herein lies the age-specific risk for older unemployed adults: once becoming unemployed they are at greater risk at staying unemployed. As a result, older unemployed people may face income cuts, deprivation of a central adulthood role and their mental and physical health may suffer. In this chapter, we draw attention to the latent functions of work, and the psychosocial consequences of job loss in later life. Applying a life-course perspective, the aim of this chapter is to explore how job loss can be framed as a form of acute economic exclusion, and how this exclusion can have significant implications for poor mental health. In a context of rising retirement ages, and the lack of preparedness of the labour market to deal with an ageing workforce, it is essential to understand these dynamics to guide policy development.