Financial crises are periods characterised by devastating losses of income, work, a certain future, and a stable family life. The effect on mental health might be catastrophic. But what does the evidence tell us about who’s most in danger, and in what ways?
We are the primary team to do a scientific review of world research linking financial crises and mental harms. The evidence from almost 100 eligible studies (out of nearly 7,000 we considered) shows that these crises have consistent, long-term negative effects on the wellbeing of whole groups of individuals, including increases in depression, anxiety and risk of suicide.
But not everyone seems to be affected equally. Your gender, age, job and whether you will have a family are all key aspects in determining how vulnerable you might be to the stress and poor mental health related to financial loss and insecurity.
Manual employees (reminiscent of farmers, tradespeople and people working minimum-wage jobs) are vulnerable as they typically have less of a security net, while small business owners are particularly liable to financial pressures and worries.
People at either end of the age spectrum are also more vulnerable as they’ve fewer resources. Others at higher risk include families, individuals with lower levels of formal educationand people with long-term health conditions.
Suicide mortality rates increase each during and after periods of monetary crisis – a risk that’s all the time higher amongst men.
However, women are more vulnerable to suffering poorer mental health on the whole during a financial crisis, as they have an inclination to tackle more responsibilities each at work and residential – including increased emotional labour supporting others who could also be struggling financially.
Stigma, stress and social roles
Our research highlights three broad challenges to the mental wellbeing of individuals struggling in a financial crisis. Understanding the best way to address them could help make people more psychologically resilient within the face of future financial downturns. Here are some recommendations based each on the study’s findings and our combined research knowledge and expertise in health psychology.
1. Social stigma and support
The stigma of mental illness is decreasing in lots of societies, as we’ve turn into more comfortable talking about our wellbeing. It’s less clear, though, if we’re okay talking about our funds. Encouraging people to be more open about financial distress with trusted friends, members of the family and partners, freed from any judgment, might be especially necessary during times of economic uncertainty.
Higher levels of trust in other people offer one other defence against mental distress during times of monetary crisis. The reduced stigma around discussing mental health and suicide can buffer against among the most devastating outcomes. Research shows that talking about suicide can save lives.
2. Stress and insecurity from lack of resources
Even in case your job feels secure, financial downturns can result in increasing pressures at work consequently of greater workloads and reduced staff.
If you might be an worker, check whether your employer subscribes to an worker assistance programme that delivers legal and financial advice and psychological support when needed.
Alternatively, join a union – most provide legal advice and financial support. Practical support for business owners is also available.
When feeling threatened with lack of income or job security, connecting with people in similar positions each in-person and online, reminiscent of via parent groupscan show you how to feel you’re not alone and is a great way of sharing resources. You also needs to find a way to get help out of your local council.
3. Challenges to identity, social roles and meaning
Losing your job or income understandably damages your sense of self. But identity and meaning might be present in various elements of life, not only work.
Be careful not to think about yourself as “only one thing” – whether a breadwinner or a carer – as this may create a way of fragility. Strive to find greater meaning through family, hobbies, organisations and community work.
And all of us have to encourage understanding that it’s not the only responsibility of ladies to be the emotional caregivers in families and other care situations – a perception that may damage their sense of identity. Household work and childcare must be divided as evenly as possible in any respect times, but especially amongst periods of crisis when individuals are feeling highly stressed.
Mark Benedict Barry via Wikimedia Commons, CC BY
Saving lives and the economy
Declines in mental health shouldn’t be considered an unavoidable cost of monetary crises – that is unsuitable economically in addition to morally. Supporting a nation’s wellbeing could save a struggling economy billions by reducing mental illness-related sickness and disability, and ensuring that optimal work practices can proceed.
Our review highlights that the best way societies are structured affects the impact of monetary crises on their populations’ mental health. It is probably not surprising, for instance, that countries with particularly strong welfare systems, reminiscent of Iceland, reported minimal to no increases in suicide rates following a financial crisis.
At a national level, having strong welfare, accessible health services and progressive attitudes towards mental health are shown to scale back suicide and mental illness. On a person basis, reaching out to others, having supportive social networks, rethinking our identities and developing financial knowledge may help us all weather current and future crises.
Whatever stage in life you might be in, it’s a great idea to familiarise yourself with available mental health services. In the UK, for skilled help, contact your GP, use the NHS e-referral platform or take a look at the NHS talking therapies services. Charities and organisations reminiscent of Mind, Samaritans and the Mental Health Foundation also provide expert advice and skilled support.