Almost everyone has been affected by the global recession that started in September/October 2008. During a recession or economic crisis, mergers and acquisitions, restructuring, downsizing and privatizations arc inevitable. Recession is a stressful event that affects most organizations and the ensuing major organizational changes result in stressful layoffs and unemployment. The employees or survivors who remain after organizational change may perceive the consistent threat of job insecurity and may need to work longer hours to keep their jobs. Hence, both layoffs and survivors suffer from stress-related health problems (physical and mental health) and negative effects on their well-being (career, financial, physical, psychological and social). This chapter will discuss the model of occupational stress in recession, and the adverse effects of recession-related events on the health and well-being of individuals. The effects of the aftermath of recession on health and well-being will also be discussed. The environmental adaptation-level theory explains how a curvilinear relationship can occur between the recession and the outcomes, which suggests that people may adjust to the adverse effects of recession and the effects may level off gradually. Ways of coping with recession at the individual level will also be discussed in this chapter.
SIU, O. L. (2013). The adverse effects of recession-related events on the health and well-being of individuals. In The psychology of the recession on the workplace (pp. 101-116). Edward Elgar. https://doi.org/10.4337/9780857933843.00015