Job loss is more than a financial setback. In our high-stress, high-cost environment, it can deeply affect your mental wellbeing, triggering shame, anxiety, and grief. Here is why emotional recovery matters just as much as financial security.
In 2025, job loss remains a deeply felt reality for many Singaporeans. Throughout the past few years, we have witnessed companies across industries undergo retrenchment exercises, shaping national conversations about job insecurity and financial instability. Even now, the unemployment rate is still of major concern, having increased from December last year (2.9%), to March this year (3.1%).
Furthermore, if you’ve been made redundant, jumping into another job won’t be easy – economic uncertainties, especially in the wake of global disruptions, have encouraged firms to grow cautious when it comes to hiring decisions.
Certainly, the struggle then to regain financial independence in a country with a high cost of living becomes our utmost priority. But beyond our material loss and the stress of attaining security in a relatively bleak job market, something we may not give enough attention to is the psychological consequences – the feelings of helplessness and anxiety and even shame – that can weigh heavy when we suddenly find ourselves without work.
Why Losing a Job Can Feel Like a Breakup
The discussion around mental health in relation to job loss is often relegated to the background, understandably overshadowed by more immediate monetary worries.
However, we also can’t deny that such a situation can have a high emotional toll. It is, in fact, capable of putting us through the five stages of grief:
- Denial: The shock and disbelief of being told we no longer have a job, leading us to hope that a mistake has been made or that the decision will be overturned.
- Anger: The perceived unfairness and helplessness brought on by the unexpected loss.
- Bargaining: Where we fight to regain control, by trying to negotiate with management or HR, or rushing to find a new job.
- Depression: The sadness and hopelessness that naturally follows.
- Acceptance: Finally adjusting and moving forward.
This is because involuntarily joblessness is akin to a major life event, requiring not just financial but also psychological adapting. Hence, it is important to recognise the domino effect it can have on our mental wellbeing.
The Psychological Impact of Job Loss
Job loss often triggers an emotional rollercoaster, affecting everything from our self-esteem and relationships, to our quality of life.
The Rise of Self-Doubt and Anxiety
Central to this loss is the impact it has on our self-esteem.
As adults, a job means more than monetary stability – it’s a part of our identity. Losing it can feel like a part of us is being eroded, even in the case of retrenchment, which isn’t even personal in the first place.
This can cause us to fall into a mental spiral.
“Because your self-esteem has taken a beating from this rejection, many of us will experience doubt and question our abilities to perform up to task,” said Dr Geraldine Tan, the principal psychologist at The Therapy Room, in CNA.
In addition, we don’t always know why we’re being let go off, especially in the case of layoffs. This can exacerbate feelings of self-doubt as we ruminate over what we did “wrong”, and why we were “picked” to go.
Furthermore, the uncertainty associated with losing a job can increase our distress, as we worry about living day-to-day and supporting our families without regular income as an anchor. It may cause us to cut down on things we used to enjoy, such as takeout, memberships and subscription services, in an effort to limit our budget and prolong whatever we have in our bank.
The lack of purpose and direction that looms over us when we’re without the comfort of a routine job can also aggravate the matter, eventually leading to anxiety and depression.
The Heightened Social Isolation
Our social dynamic can shift entirely in the aftermath of a job loss.
It’s not just a matter of not having work, but of also being deprived of a community. We happen to do a lot of mingling in the office, particularly since we’re there more days than not.
But being cut off from it can limit our access to what was once a key social network, diminishing our sense of belonging and place in the world, and increasing our sense of loneliness.
Moreover, with career success being a part of one’s social identity, there can be a sense of embarrassment and shame that comes with being unemployed. This can cause us to withdraw from our social circles, even avoiding family and friends, leading to further isolation.
So, What Can You Do to Cope?
Long period of unemployment
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The psychological cost of job loss can be immense – but it’s not insurmountable. The path to mental recovery involves acceptance, resilience, and a supportive network.
Stay Calm
Pouring all our time and energy into finding a new job can be instinctive after losing the prior one, but obsessing over the search can be counterproductive, leading to greater stress and turmoil.
Instead, make the time you spend on the job hunt more organised and purposeful. Block out certain periods or days to work on your applications or attend networking sessions.
And if you need some aid during the interim, check out the SkillsFuture Jobseeker Support Scheme.
Develop a Healthy Routine
Healthier habits are key to managing your cortisol levels, and helping you stay present and steady – and being without a 9-to-5 is a rare chance for you to fix up an unhealthy lifestyle.
Take the time to establish a regular workout regime and a good sleep schedule. You can also consider practicing mindfulness techniques to help keep the stress at bay.
Seek Help If Needed
Culturally, we’ve been conditioned to endure hardships on our own – but this doesn’t mean we should be afraid to reach out.
During tough times, let yourself lean on friends and family, or even a therapist. They can offer reassurance and perspective, and, in the case of a mental health professional, valuable coping strategies.
Remember, the ability to thrive after a job loss isn’t just about securing the next paycheck – it’s about staying resilient in the face of adversity.
External References
- Anvari-Clark, J. (2025, March 29). Losing your job is bad for your health, but there are things you can do to minimize the harm. CNN Health. Retrieved from: https://edition.cnn.com/2025/03/29/health/job-loss-conversation-partner-wellness
- Cirino, E. (2025, May 28). Depression After a Job Loss: Statistics and How to Cope. Healthline. Retrieved from: https://www.healthline.com/health/depression/job-loss
- Fuller, K. (2020, May 13). Mental Health and Job Loss. Psychology Today. Retrieved from: https://www.psychologytoday.com/sg/blog/happiness-is-state-mind/202005/mental-health-and-job-loss
- Lim, B. L. (2024, May 6). Commentary: The emotional impact of being retrenched. CNA. Retrieved from: https://www.channelnewsasia.com/commentary/retrenchment-emotional-impact-layoff-grief-stages-4308381
- Ong, S. (2023, November 4). Adulting 101: Laid off 3 months into my first job, I felt self-doubt even after landing another. I’m learning to cope. CNA. Retrieved from: https://www.channelnewsasia.com/today/adulting/adulting-retrenched-3-months-first-job-anxiety-performance-4633606
- Ryu, S., & Fan, L. (2023). The Relationship Between Financial Worries and Psychological Distress Among U.S. Adults. Journal of Family and Economic Issues, 44(1), 16–33. Retrieved from: https://pmc.ncbi.nlm.nih.gov/articles/PMC8806009/
- Tham, D. (2025, June 27). Unemployment inches up in Q1 2025 as jobs growth slows: MOM. CNA. Retrieved from: https://www.channelnewsasia.com/singapore/unemployment-jobs-retrenchment-manpower-tariffs-uncertainty-mom-5206881
