Losing more than a job: unemployment experience and the behavioural and social dimensions of mental wellbeing

Purpose This paper aims to examine the association between the experience of unemployment and mental wellbeing and explores whether health-related behavioural and perceived social support deprivation account for part of the wellbeing gap between employed and unemployed individuals. Design/methodology/approach Microdata from the 2023 Spanish Health Survey are used to compare individuals facing short- and long-term unemployment spells with those in employment. The unemployment-wellbeing association is split into direct and indirect components following the strategy described in Kesavayuth et al. (2022). Findings Unemployment, particularly if long-term, is negatively associated with mental wellbeing. Health-related behavioural deprivation and perceived social support deprivation are both linked to unemployment and to lower wellbeing and account for part of the observed wellbeing gap associated with unemployment. Originality/value The paper provides nuanced evidence by distinguishing short- and long-term unemployment in Spain and estimating how much of the unemployment – wellbeing gap is accounted for by behavioural and social support deprivation. The findings suggest that labour market policies may benefit from considering these dimensions beyond income losses.