Unemployment runs counter to mortality rate

By Yoon Ja-young

Losing one’s job often means major problems in life — and in some cases people even commit suicide out of desperation, or so we think. A recent study, however, contradicts this assumption noting that higher unemployment does not increase the mortality rate.

A paper by Lee Chul-hee, an economics professor at Seoul National University, and Kim Tae-hoon, a Ph.D. student, titled “Are Recessions Good for Your Health?” examined the relationship between business cycles and death rates in Korea based on data from 1991 to 2009.

The two found that mortality rates were negatively related to the aggregate unemployment rate.

When the unemployment rate rose from 2 to 3 percent, the mortality rate fell by 2.8 percent. If the jobless rate grew from 4 to 5 percent, then the mortality rate dropped by 1.8 percent.

This phenomenon is not unique to Korea, according to the authors. A 1 percentage point increase in unemployment decreased the mortality rate by 0.5 percent in the United States; and an analysis based on the statistics of OECD member countries showed that a 1 percent increase in the jobless rate pulled down the mortality rate by an average 0.4 percent

The authors explain that the economic boom can negatively affect people’s health in a number of ways. “An economic boom decreases free time, making people spend less time on their health such as exercising. Extended work hours, strengthening work intensity, aggravating work conditions and increasing stress can also negatively affect workers’ health,” the study explained, picking increasing alcohol consumption and cigarette smoking as additional negative factors.

The negative correlation between the unemployment and mortality rates was stronger in Korea compared with other OECD countries as it doesn’t have a good social security system, according to the paper.

It also showed that middle aged men are most vulnerable.

The research showed the suicide rate increased when unemployment was low, compared with the United States where fewer people killed themselves when they had jobs.

“The motivation for suicide may differ in Korea and the United States. While many people may decide to kill themselves due to economic hardship, most of them may be choosing death due to non-economic factors,” the authors noted. They added that an economic boom, measured by a falling unemployment rate, may not lead to an improvement in the quality of life for most people.

“Economic growth, or the increase in employment and income, is positive in many ways. However, there may be many side effects unmeasured by income. The increasing mortality rate following deteriorating working conditions and increased exposure to germs may be such side effects.”