This study provides empirical evidence in support of the literature that contends that, following redundancy, unemployment has a deleterious psychological impact. First, the present study found that, following redundancy, those who remained unemployed were negatively affected with respect to mental health, while those who gained new employment reported improved mental health. Second, and associated with the first finding, those who remained unemployed reported less life satisfaction following redundancy, while those who gained new employment experienced improvement in life satisfaction. This negative impact of redundancy and ensuing unemployment was consistent over time but was apparently ameliorated by obtaining new employment.
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