ABSTRACT
Unemployment has become a major social issue during the past 20 years. Even countries where unemployment remained low during the 1983 recession have experienced increased unemployment since 1990, although by the end of the decade official rates in many countries had declined (see Table 19.1). Globalization has led to restructuring and downsizing in many industrialized societies and a shift, for many workers, from the prospect of secure, long-term employment to unemployment or inadequate or insecure employment. There is growing evidence that the negative consequences of this shift are not merely economic, but also psychological. This chapter reviews the recent research literature examining the psychological effects of unemployment and inadequate employment on mature job-losers and on school leavers. Finally, it speculates that declining birthrates in many countries are a likely consequence of an increasing shift from secure to insecure employment and the possibility that in the future society might need to encourage older retirees to re-enter the workforce so that they do not become an excessive burden on younger workers.
