Redundancy: breaking the bank and the spirit

I cringe when saying the words, “I’ve recently been made redundant”. I see it as meaning, no longer useful, not needed, superfluous. And yet, in today’s volatile job market, it’s a reality many of us are facing.

The problem is, losing a job isn’t just about losing a payslip (although, the loss of a steady salary can equate to a loss of stability – which is huge, and really scary), it can also mean losing routine, identity and confidence. And that’s where mental health comes in.

The mental health impact

According to Mind’s Big Mental Health Report 2025, financial insecurity and unemployment are among the biggest drivers of poor mental health in the UK. In fact, among those unemployed, the prevalence is far higher. 40% of unemployed adults report a mental health problem, compared to 18.3% of those in work.

When redundancy strikes, it’s not just the bank balance that takes a hit. Self‑worth, social connection and daily structure often vanish overnight. That cocktail of uncertainty and isolation can exacerbate existing mental health problems or spark new ones.

The employment market reality

And here’s the kicker: the recruitment market feels like a complete dumpster fire right now. According to the Office for National Statistics, the overall unemployment rate has risen to 5.0% (for July to September 2025), its highest level since early 2021. That’s 1.79 million people unemployed in the UK.

Job vacancies remain below pre-pandemic levels and competition is fierce. The ratio currently stands at 2.4 unemployed people per official vacancy. And for candidates, this means longer job searches, more rejections and more stress. When you add the myriad of hoops candidates are being asked to jump through – a bit like what I described in a recent post – of course it will wreak havoc on a person’s mental health.

Rethinking the narrative

Redundancy and unemployment don’t exist in a vacuum. They collide with mental health challenges, creating a feedback loop: stress makes job hunting harder, and job‑hunting stress worsens mental health. It’s a cyclone-like cycle that makes it difficult to stay motivated, and hopeful.

But, in the same way I’m trying to rewrite my inner dialogue, I’m trying, with all my might, to reframe my outlook on my current situation. Instead of focusing on the end of my previous role, I’m trying to look at it as a period of transition – a liminal space if you will.

Liminal spaces are uncomfortable by nature. They’re the threshold between what was and what will be. Neither here nor there. It a messy space, uncertain and sometimes tear-soaked. But liminal spaces are also where transformation can happen. They’re where we shed old identities (rather than losing them) and discover new ones. A place where we can pause, reflect and maybe even reimagine what comes next. This in-between feels like standing in thick fog, unsure which direction is the right one to walk in. But it’s also where we can learn that we’re more than just our job title.

So, along with the incessant job board refreshing, I’m also using this time intentionally. I’m completing courses centred on mental health – something I’m genuinely passionate about. I’m also volunteering with a charity, to keep my skills flexed, continue building my portfolio and support a cause I care about. And probably the most difficult one, the one that’s I still need to work on – I’m trying to rest and do things that make me feel good, like reading and writing and taking long peaceful walks as I listen to loud, blaring music.

What employers and recruiters can do

If you’re in a position to hire people or support people through career transitions, you have a real power to make this experience a little less devastating:

• Normalise conversations about mental health in recruitment – acknowledge the human cost of job loss.
• Offer flexible support for candidates navigating unemployment – consider how your processes add or reduce stress.
• Strive for inclusive recruitment practices instead of adding bigger barriers.
• Recognise resilience as a skill, not just a buzzword – candidates who’ve weathered redundancy have certainly learned adaptability.
• Understand employment gaps instead of writing candidates off at first glance.

Remember: there’s a real-life human person behind every CV. Someone who might be rebuilding confidence, redefining identity and wrestling with self-worth. How you treat them matters.

If you’ve been through redundancy, I know that every “no” feels like a gut punch, that rejections take a bite out of what’s possibly already eroding confidence. But you’re trying your best. Share your story, if you should feel so inclined. But also – try to give yourself a break (both mentally and physically).

If you’re struggling with unemployment and mental health, organisations like Mind, Samaritans and CALM offer free, confidential support.