Job loss and psychological distress during the COVID-19 pandemic: a national prospective cohort study

BACKGROUND: The COVID-19 pandemic caused substantial increases in unemployment; however, the association between these job losses and psychological distress is not well documented. Our study reports on this association from a cohort study, with a particular focus on educational differences in both the likelihood of job loss and its potential implications for mental health. METHODS: Utilizing data from a large prospective cohort study of parents in Norway (n = 58,982), we examined changes in psychological distress within four groups of respondents: those who during the first wave of COVID-19 had (i) no change in their employment situation, (ii) worked from home, (iii) been furloughed, or (iv) lost their job. RESULTS: Psychological distress increased in all groups. In z-scores relative to pre-pandemic levels, the increases were (i) 0.47 [95%-CI: 0.45–0.49] among respondents with no change in their employment situation, (ii) 0.51 [95%-CI: 0.49–0.53] among respondents who worked from home, (iii) 0.95 [95%-CI:0.91–0.99] among those furloughed, and (iv) 1.38 [95%-CI: 1.16–1.59] among those who permanently lost their job, corresponding to increases of 89%, 95%, 170%, and 185%, respectively. While respondents without university education had a 2 to 3 times higher risk of job loss, the negative impact of job loss on psychological distress was similar across educational levels. CONCLUSIONS: Participants exposed to job loss during the pandemic experienced a stronger increase in symptoms of depression or anxiety compared to those who remained employed. Although higher education lowered the risk of losing work, it did not substantially diminish the impact on mental health from losing work. SUPPLEMENTARY INFORMATION: The online version contains supplementary material available at 10.1186/s12889-023-16303-5.