Financial Coping Following Job Loss: Initial Validation of a Multidimensional Measure and Test of an Expanded Career Self-Management Model

Research on coping with job loss has emphasized job search behavior aimed at re-employment, with comparatively less attention to how individuals manage the psychological and financial challenges associated with unemployment. To address this gap, we developed a multidimensional measure of financial coping and used it in an initial test of an expanded social cognitive model of career self-management (CSM) in the context of job loss. Participants were 554 U.S. adults without full-time employment after leaving a full-time job. Exploratory factor analysis in one randomly selected sub-sample ( n = 250) yielded a 5-factor financial coping structure, which was supported in a confirmatory factor analysis in the second sub-sample ( n = 304). An expanded CSM model, including the financial coping scales, generally fit the data well in predicting emotional functioning and job search progress. However, collectively, the financial coping dimensions explained only modest additional variance beyond established predictors, suggesting that they may reflect context-specific reactions to financial strain rather than broadly adaptive, protective resources. We discuss implications for theory, research, and career practice related to coping with unemployment.