Yes – getting fired is a traumatic experience

If it hasn’t happened to you, it’s happened to a friend, family member, or a colleague you were close with. The harsh reality of professional life is that people lose their jobs. In fact, around 40% of Americans will be let go at some point in their lives.

For some, they take it in their stride. It may be that they disliked the job and see it as a relief. It may be that they don’t get their sense of self-worth from their employment. There are many reasons that it may be a simple, professional parting of ways. 

But for most, the experience of being let go can be deeply traumatic. Research has shown that it can increase the chances of developing a health condition by 83% in the first 15 to 18 months and can even lead to higher rates of suicide. 

Why does losing your job hit you so hard?

Here’s the thing. If you’ve been let go and are struggling more than average, it isn’t because of you. There are many extenuating reasons that you may feel that way. 

The financial reality

We have spoken before about the unquestionable link between finances and mental health. Having an unstable financial situation can lead to an increase in domestic arguments, a rise in alcohol or drug use, or any other anxiety- or depression-related issues. 

If we look only at the financial side, this alone can be enough to seriously affect an individual’s mental health. But, of course, it’s not only about finances. 

The emotional toll

Being let go can be like a proverbial one-two punch to the gut. As mentioned, the hard financial reality immediately comes to the fore. What about my mortgage? What about my children’s needs? What about that vacation we promised ourselves? 

All these questions flood into our minds at the exact time that our sense of self-worth has been hit the hardest. Culturally, much of our identity is wrapped up in our jobs. The National Library of Medicine states clearly that our careers act as a primary source of purpose, social standing, and self-esteem. 

Whether we enjoy being part of the rat race or not, the way people judge and interact with us is closely tied to our jobs. The sudden loss of that job can, in some cases, also represent a loss of status, which can be devastating for some individuals. 

Ongoing mental health struggles

The above may happen as a direct result of losing your job. But our lives are rarely perfect even when we are in full-time gainful employment. Let’s not forget that around 1 in 5 Americans struggle from mental health issues at any given time. 

This means that, for people already struggling with mental health, the added stress of losing their job can be even more pointed. What’s more, research suggests that people who struggle with their mental health may find it more difficult to maintain their jobs.

The responsibility of the leader

While they generally get less sympathy, letting people go can genuinely be difficult for the manager or boss. If you are considering layoffs, you need to remember that you also have a responsibility. 

This responsibility isn’t to keep an employee who isn’t right for the business. These situations cannot be avoided. However, the way you deliver the news – with empathy, with respect, and with support – can have a serious impact on their mental health after they leave the business. 

A good leader is empathetic. This is the only way to get the support and trust of your team in the long term. If you treat an employee badly, apart from it harming that individual, it will also harm the rest of your team. 

So, consider carefully how you handle this situation. For some people, the emotional toll of doing the firing can make them appear cold. You need to take active steps to avoid this. 

How to cope with job loss

Navigating the aftermath of a layoff or termination is rarely a linear journey. When the initial shock subsides, it is incredibly common to experience a grieving process similar to losing a loved one. Coping requires a delicate balance of validating your emotions while actively protecting your mental wellbeing and planning your next steps.

1. Allow yourself to grieve and process

Before rushing to update your resume, give yourself permission to feel the anger, sadness, or shock. Bottling up these emotions only prolongs the psychological impact. Acknowledge that your feelings are a completely valid reaction to a disruptive life event.

Resource: The American Psychological Association (APA) offers excellent strategies on managing stress and emotional recovery after a job loss on their public help center.

2. Establish a structured routine

Losing a job means losing a daily schedule, which can quickly lead to feelings of aimlessness. Create a new, gentle routine that balances job-hunting with physical activity, hobbies, and social connection. Treat your job search like a part-time job, not a 24/7 obsession.

Resource: Use free scheduling and goal-tracking apps like Todoist or Trello to structure your weeks, ensuring you dedicate time to both professional steps and personal wellness.

3. Seek professional support early

You do not have to carry the emotional weight of unemployment alone. If anxiety, depression, or feelings of worthlessness begin to overwhelm you, speaking with a professional can provide you with the coping mechanisms needed to navigate this transition.

Resource: If you are in immediate distress, you can call or text the 988 Suicide & Crisis Lifeline for free, confidential support. For ongoing guidance, platforms like Psychology Today’s Therapist Finder can connect you with specialists in career transitions and grief.

You are more than your job

Losing a job is undeniably one of life’s most stressful events, affecting far more than just your bank account–it strikes at the core of your identity and mental wellbeing. But while the experience is traumatic, it does not define your future worth or capability. 

With the right coping strategies, empathetic leadership during transitions, and professional support, it is entirely possible to rebuild, rediscover your purpose, and come out stronger on the other side.

Reach out to us at MHAI today to explore our resources and find the support you deserve.