The human cost of the shifting economy: Holden’s closure and Elizabeth’s future

The study undertaken by Milner et al. (2014) represents an acknowledgement of the hardship faced by individuals and indeed communities affected by involuntary job loss. As revealed in previous research, lower socio-economic status and mental disorder are the greatest risk factors for suicide and attempted suicide (Beautrais, 2001). Focused on young adults aged 18–34 years, this research is particularly relevant in an era where Australia is transitioning from a manufacturing-based economy towards a knowledge-driven economy – the reality of which hit home in December 2013 with the announcement by General Motors (GM) that it would discontinue operations in Australia by 2017. This decision will dramatically affect the workers at their plant in Elizabeth, South Australia with its closure signalling the loss of 1600 jobs (General Motors, 2013).

Job loss on this scale in the northern suburbs of Adelaide, which as a region has recorded the extraordinary youth unemployment rate of 44% (Department of Further Education, Employment, Science and Technology, 2014), is inevitably going to have community-wide implications: with a greater reliance on welfare and less money spent in local communities. This is particularly concerning when viewed alongside the latest research conducted by the Young and Well Cooperative Research Centre in a national survey of 1400 young people, which found that almost one in five young men aged 16–25 felt that life is not worth living (Burns et al., 2013). In this study, a cross-sectional nationally representative survey, unemployment and moderate to very high levels of psychological distress were associated with suicidal thoughts and behaviour (Burns et al., 2013).

South Australia’s state government has vowed its support in helping the region cope with the social implications of Holden’s closure. Anglicare has been vocal of its concerns regarding the flow-on effects from the closure on the families of northern Adelaide, citing the enormous emotional and financial burden that comes with job loss (Rivett and Winter, 2013). Expecting this pressure to evoke ‘family breakdowns, more domestic violence, more homelessness, more truancy [and] drug abuse’ (Rivett and Winter, 2013), as well as an increase in gambling, there is a definite air of trepidation as to what the future holds for the people of Elizabeth.

The findings of Milner et al. (2014) indicate that early action is needed in two areas. The first is to make a strong and concerted effort to prevent mental health issues that, when coupled with involuntary job loss, increase the risk of suicide and attempted suicide. As Milner et al. themselves conclude, it was not possible to assess, in their study, whether the mental illness occurred before or after involuntary job loss. The second relates to the significant risk for young people who are living with a mental illness when they lose their jobs. None of this is simple, with other factors such as the economic environment, the availability of jobs in the local area, previous unemployment and life stage all playing a critical role in how greatly a person might be affected by the loss of a job. While the Milner et al. (2014) study was focused on young people aged 18–34 years, involuntary job loss for older people will inevitably bring significant stress; certainly financial, but also a loss of identity and structure.

Both depression and suicide are complex and are often the result of a culmination of individual-socio-environmental-genetic risk factors coupled with adversity across a lifespan (Beautrais, 2001; Burns et al., 2002). In 2011, 209 people died by suicide in South Australia (Australian Bureau of Statistics, 2013b), with 2272 people taking their own lives nationwide (Australian Bureau of Statistics, 2013a). This is a clear illustration that despite mental health reform and Australia’s National Suicide Prevention Strategy, we still have a long way to go to ensure that timely and effective treatment is available for people dealing with mental health issues. The Milner et al. (2014) paper reports an association between involuntary job loss and the likelihood of suicide and attempted suicide; however, the strength of this relationship was attenuated after adjustment for socio-economic status and mental disorder (Milner et al., 2014). Involuntary job loss, extremely high youth unemployment rates and very little prospect of finding employment in the local area appear to be the ingredients for a perfect storm; however, the South Australian government and state-based welfare organizations are in a unique situation – they have time on their side, with nearly 3 full years to instigate a strategy that will help protect the psychological and financial well-being of these workers and their families.

The report by Milner et al. (2014) is pertinent in this time of change, providing real data and analysis on the impact of involuntary job loss on mental health and well-being. Milner and colleagues make a final recommendation – the need for employment programs and support services to reduce the risk of suicide among young adult workers – but as a society we have a larger issue at hand. How do we provide hope to Australian communities that rely on industry for their livelihood and how do we break the cycle of poverty and unemployment when that industry closes its doors? Access to services is important, but the prevention of mental disorders and the promotion of well-being require equal attention.

See Research by Milner et al., 2014, 48(4): 333–340.