The psychological toll of unemployment

Unemployment in South Africa is a numbers game, and it has never been a happy ending, despite positive down-ticks every now and then. Presently, there are around 8.1 million unemployed people in South Africa, and among our youth, almost two-thirds remain jobless. It’s a sustained bleak picture, but it only tells half the story.

Being jobless, or suddenly booted from employment, can have a significant destabilising impact on an individual, said Carlyn Perils of the South African College of Applied Psychology (SACAP). She said that a job does more than provide an income. It shapes routine, identity, social circles, and a sense of direction.

When it falls away, people are often left trying to steady far more than just their finances. “Your identity, sense of purpose, and social world is often attached to your job role,” she said. “This makes losing your job a profound loss.” Perils said that the emotional response to job loss can mirror grief.

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In cases where dismissal feels unfair or follows a challenging work environment, the impact can be more traumatic. Even where retrenchment is procedural, the psychological shock remains. A career, she said, often represents years of planning and personal investment.

It is tied to goals, aspirations, and a vision for the future. When employment ends, that roadmap can suddenly feel uncertain. “It can be incredibly discouraging and lead to high levels of anxiety because of the uncertainty around when you will find work again and how it will affect your future,” she said.

Time without work can deepen the strain. Research has consistently linked prolonged unemployment to rising risks of depression, anxiety, and suicide. Perils said social isolation is a major factor.

“Many unemployed individuals withdraw socially because of the stigma attached to job loss,” she said. “At the same time, they lose contact with colleagues who may have been meaningful personal connections.” Workplaces often provide a sense of belonging and shared purpose. Colleagues become part of daily life.

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