The Trump administration’s firing and furloughing of tens of thousands of federal workers and contractors have obviously caused economic hardship for Americans employed in national parks, research labs and dozens of government agencies.

As a professor of social work who studies how people’s finances affect their physical and mental well-being, I’m concerned about the health hazards they’ll face too.

My research shows that losing your job can seriously harm your physical and mental health, especially when you see the situation as a catastrophe rather than a temporary setback.

Power of financial perception

When people lose their jobs, they do have real problems. Typically, for example, their income and savings decline. They might struggle to keep up on their rent or mortgage payments and might not be able to afford to maintain the same standard of living they had beforehand.

However, research shows that your perspective regarding your financial situation can do more harm to your health than your actual financial circumstances – even as your savings dwindle.

Someone might view losing their job as a temporary setback and remain relatively calm, while another person might experience the same circumstances as a disaster, triggering intense stress that cascades into serious health problems, such as depression and substance abuse. This difference in perspective often determines whether somebody will suffer significant health problems when they lose their job or experience a similar financial setback.

In a study I published in 2023 with social work scholar Theda Rose, we found that how a person felt about a decline in income mattered 20 times more than the actual financial change itself.

This finding comes from our analysis of data from the 2018 National Financial Capability Study, which surveyed more than 27,000 American adults. We used advanced statistical methods to examine how different financial factors affected people’s health and financial decision-making, looking specifically at financial strain, confidence in managing money and overall financial satisfaction.

The study confirmed earlier work about the vastly different psychological and physical responses two people can have when their income falls by the same amount, based on how they perceive this change.

Pathway to illness

Previous research has typically viewed what’s known as “financial precarity” – not having enough money to get by – in either purely technical terms, such as being able to come up with US$400 in an emergency, or in terms related to your feelings about that situation, such as persistent worrying about your finances.

However, we found that both aspects of financial precarity can influence health and behavior.

Among the many variables we explored, a decline in income surprisingly contributed much more in terms of worry than just not being able to pay the bills.

This distress caused by economic hardship isn’t just a psychological problem – it can produce physical changes that may have long-term health implications, such as high blood pressure.

Mental health suffers

There’s also a toll on your mental health.

Losing a job can lead to anxiety, depression and lower self-esteem.

Interestingly, people who face ongoing financial challenges but don’t get stressed about their situation aren’t more likely to develop depression symptoms than people without any financial stress.

A systematic review of 65 studies found clear connections between debt and mental health problems, depression and even suicide attempts.

Physical health troubles

Losing your job can harm your body in two main ways.

First, the stress from financial worries can affect people’s bodies directly – for example, by increasing blood pressure. Being in debt is associated with other ailments, including back pain and obesity.

Second, when money is tight, people often try to save money 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 helps. When choosing between paying for rent, food and health care, people often put their medical needs last.

Unhealthy coping methods

Some people turn to alcohol, tobacco or other substances to cope with the loss of their jobs. These habits are bad for your health and may empty your wallet, adding to the financial strain.

Others turn to gambling or excessive shopping to cope, which can also make money problems even worse.

Marriage and other relationships may fray amid financial stress too. Borrowing money excessively from friends and family or snapping at your loved ones when you feel stressed out can weaken ties with those closest to you.

Moving on in healthy ways

To be sure, some people become more resilient after losing their job by adopting positive coping strategies.

Whenever you lose a job, try reaching out. Your friends and loved ones can help protect your health while you move on.

In addition to applying for new positions, spend time networking. Reach out to former colleagues, join professional groups and attend events related to your career.

Try to volunteer. It will help you sharpen or expand your skills while expanding your networks and perhaps lead you to a new job.

And consider starting or expanding a side hustle. It will generate some income, give you a greater sense of control over your life and keep you feeling productive during the monotony of sending out applications.

It’s also essential to stick to self-care basics: Regular exercise reduces stress hormones. Getting enough sleep improves cognitive function, and maintaining a busy social life provides emotional support.

Keeping healthy habits is always important. But they could protect your mental and physical health during challenging times. Losing a paycheck is hard enough. Losing your health over it is even worse.

Jeffrey Anvari-Clark, Assistant Professor of Social Work, University of North Dakota

This article is republished from The Conversation under a Creative Commons license. Read the original article.