The recent barrage of federal layoffs has sparked panic among federal employees and their families. Every day, it seems like more workers are being laid off, and one recent report showed 30,000 people have been impacted so far. 

And that’s only on the federal level. These job losses could have a ripple effect: As these individuals lose a steady income, other companies could feel the economic impact—which may then lead to layoffs in the private sector. 

All of this is an important reminder: Unemployment and depression (and mental health in general) are closely linked, even when you’ve left a toxic workplace. 

Table of Contents
Research On Unemployment And Depression
Pittsburgh Resources for Unemployment
Therapy for Unemployment
Find A Pittsburgh Therapist

Research On Unemployment And Depression

Numerous studies have shown the dramatic impact unemployment can have on someone’s mental health—especially when they’re the primary breadwinner and feel additional pressure to earn for their families. In fact, research shows financial stress and debt are positively associated with depression. 

Some of the most revealing statistics:

• 56% of people who are unemployed experience increased emotional and mental health conditions, such as depression and anxiety. (Source: Pew Research Center)
• Unemployed individuals are nearly twice as likely to be depressed as their employed counterparts. (Source: Gallup)
• One study found depression rates were three times higher for unemployed emerging adults (those 18-25 years old) compared to their employed peers. (Source: Emory University)

Further complicating issues: Unemployment and depression don’t exhibit only one symptom. Those in search of a new job may suffer from:

• low self-esteem and feelings of worthlessness
• a reduced sense of purpose
• feelings of stress, anxiety, or overwhelm
• reduced focus and motivation
• reduced enjoyment of daily activities

Left unattended, these could spin into more dangerous mental, emotional, and physical symptoms. Fortunately, however, many who find new jobs often report a boost in their mental well-being—so sometimes the best way to combat unemployment-related depression is to continue on the job search. 

Pittsburgh Resources For Unemployment

We frequently point our clients to a variety of different resources to combat unemployment. Some of them include:

1. Pennsylvania Women Work

Despite its name, this organization actually supports both men and women, and it’s a resource for helping individuals find their next job through:

• job search assistance
• professional mentorship
• one-on-one career development
• workforce re-entry assistance

It’s a powerful resource in the Pittsburgh region, and it’s earned a reputation for helping individuals enter financially and emotionally fulfilling career paths. 

Visit the Pennsylvania Women’s Work website. 

2. Breaking the Chains of Poverty

Led by the Pittsburgh Chapter of the A. Philip Randolph Institute, Breaking the Chains of Poverty is a program that helps individuals develop new life skills (like financial literacy) and trade skills (like carpentry framing and mold remediation) so they can become self-sufficient members of society. 

Ideal for former convicts and anyone who needs a hand, guarantees interviews with local unions—provided members earn high enough grades on their exams. 

Visit the Breaking the Chains of Poverty webpage. 

3. PA CareerLink

PA CareerLInk offers job search assistance, career counseling, skill assessments, training opportunities, apprenticeship information—and more. It’s a terrific resource for individuals who have recently become unemployed and need some extra support in their new job search. 

Visit the PA CareerLink website. 

4. Financial Advisors

As a major city, we have plenty of talented financial advisors throughout Pittsburgh. Despite the options, we often refer people to one of two financial professionals:

• Colton Weckerly, New York Life: Colton specializes in helping young families and new investors build long-term wealth, and he’d be especially adept at helping low- and middle-income families make tough decisions after a recent job loss. 
• Jim Greno, Compass Wealth Management: Jim specializes in working with high-income couples and families, and he can help these individuals weigh their options after becoming unemployed. 

Therapy for Unemployment and Depression

While searching for a new job and developing new skills are the most direct solutions to overcoming unemployment, therapy is often an essential step in maintaining mental health during this challenging time. Job loss can bring feelings of grief, anxiety, and even a loss of identity—especially if a person’s self-worth is deeply tied to their career.

Therapy provides a structured environment to process these emotions, develop resilience, and reframe negative thoughts. It can also help individuals set realistic goals, build confidence, and regain a sense of control over their lives.

Here are some of the biggest benefits of therapy for unemployment:

1. Crisis Management & Immediate Emotional Support

Losing a job can feel like an emotional freefall, but therapy can help stabilize your mindset. A therapist can help you work through pressing concerns, such as:

• How do I handle the immediate financial stress?
• What career path aligns with my skills and interests?
• How do I set short-term and long-term goals to move forward?

This stage of therapy often involves practical strategies, such as budgeting assistance (evaluating expenses, cutting non-essentials like Starbucks, etc.) and discussing what constitutes a living wage for your situation.

Additionally, it’s an opportunity to reflect: Did you truly love your job? Losing a job can be an opportunity for self-discovery, allowing you to explore career options that may be more fulfilling or better aligned with your passions.

2. Emotional Regulation & Stress Reduction

Unemployment can trigger a rollercoaster of emotions—fear, frustration, sadness, and even anger. Therapy provides tools for managing these feelings in a healthy way. Techniques such as mindfulness, cognitive behavioral therapy (CBT), and guided breathing exercises can help prevent emotional distress from spiraling into long-term anxiety or depression.

For those struggling with deep-seated anxiety related to job loss, Eye Movement Desensitization and Reprocessing (EMDR) can be a particularly effective tool. Originally developed for PTSD, EMDR helps individuals process distressing experiences, such as the trauma of an unexpected layoff, by using bilateral stimulation (such as guided eye movements) to help rewire negative thought patterns.

3. Reframing Negative Thoughts & Building Confidence

One of the biggest emotional challenges of unemployment is battling negative self-perceptions. Common thoughts include:

• “I’m not good enough.”
• “I messed up.”
• “I’m a failure.”

These thoughts can erode confidence and make it harder to approach the job search with a positive mindset.

Gestalt therapy can be particularly helpful in breaking free from these negative loops. Gestalt techniques, such as the empty chair exercise, encourage individuals to externalize self-doubt and challenge their inner critic. By addressing these thoughts directly and reframing them into positive affirmations—“I am skilled, I have value, and I will find a new opportunity”—individuals can rebuild their self-worth and approach the job market with renewed confidence.

Additionally, CBT (Cognitive Behavioral Therapy) can help identify and restructure self-defeating thought patterns, turning them into more productive beliefs that encourage action and resilience.

4. Career Counseling & Goal Setting

Therapists who specialize in career counseling can provide guidance on:

• Identifying transferable skills and strengths
• Exploring new career paths or industries
• Setting realistic and achievable job search goals
• Managing rejection and maintaining persistence

For some, therapy can even lead to a career pivot, whether that’s starting a business, returning to school, or pursuing a more passion-driven job. A therapist can help you navigate these decisions while providing support through the ups and downs of the job search process.

Find A Pittsburgh Therapist

If you’re looking for a Pittsburgh therapist who can guide you through your unemployment journey, contact us! We’ll prove you with the skills and resources to stay focused and mentally healthy as you continue your job search.