Adults tend to strongly identify with their work. According to Erikson (1968), a key component of identity formation involves a career choice. Those who do not enter the workforce, or who do not feel an involvement with their job, might have to define that part of their identities elsewhere.
When choosing a career, intrinsic factors are the challenges, achievements, and interest levels one might experience when doing a job. These are stronger motivators and contribute more highly to identity formation than extrinsic factors - i.e. rewards such as salary, hours of work, environment and co-workers (Waterman, 2004).
Feelings of incompetence and loss of job involvement may reduce intrinsic motivation and may impact on identity.
Various studies have highlighted the strong link between the important role that career choice and job involvement plays in the formation of identity (Frone, Russell, & Cooper 1995; Crocetti, Avanzi, Hawk, Fraccaroli, & Meeus, 2014 ).
The early phase of career
Entry to the work force means learning new roles and patterns of behaviour, adapting to a new environment. Many people respond by changing jobs several times in the early stages until a clear career choice is made or until the right employer is found. Young graduates who move on usually do so because they find the workplace does not appreciate, or appear to need, their skills and education.
Unemployment
Studies in different countries have found similar results of unemployment: increasing levels of boredom, apathy and insecurity. The unemployed spend less time engaged in social pursuits than do their employed counterparts despite having more time.
Nash (1981) found New Zealand young people to engage in more petty crime and drug taking, to be more restless, apathetic, experiencing hopelessness, low self-worth and lack of confidence as well as a loss of trust in the system.
The extent of psychological damage can depend on
Does unemployment cause these characteristics or did these characteristics cause the people to be unemployed? Studies (e.g. Patten & Noller, 1984) indicate quite clearly that the former is true: unemployment inhibits growth.
Evidence supports the fact that unemployment inhibits growth and adversely affects an individual's sense of identity. It is therefore logical and obvious that:
A more recent meta-analytic study has indicated a significant relationship between unemployment and decreased rates of mental and physical well-being (McKee-Ryan, Song, Wanberg, & Kinicki, 2005).