In periods of economic recession, negative mental health symptoms like depression, anxiety, panic attacks, and self-harm tend to increase, according to a study in Behavioral Sciences. Adverse changes in the labor market create wage cuts and layoffs. And for those who remain employed, decreased workplace safety standards and increased workloads are catalysts for poor mental health outcomes like worthlessness, anxiety, shame, and frustration.
“High inflation typically causes anger and frustration, especially toward elected officials,” says Jim Butkiewicz, macroeconomist and economics professor at the University of Delaware. “If wage and salary increases lag inflation, there will be unrest in the labor market, with demands for increased compensation.”
Data shows that the prices for everything from plane tickets to frozen vegetables are on an incline. Inflation hit a 40 year high in the U.S. in 2022 and skyrocketed at the fastest pace since 1981, according to the Bureau of Labor Statistics, and is a source of stress for 82 percent of U.S. adults. This soaring financial stress can provoke specific emotional or cognitive responses in consumers, none of which are typically positive.
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