The Unemployed Workers’ Perceptions of Stress and Employment Prospects in Macedonia: The Role of Alternative Adjustment Mechanisms

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Abstract

Depressed labour market conditions in Macedonia manifested by high and persistent unemployment rate, strong segmentation and prevailing long-term unemployment is considered as a heritage of more than two decades long period of transition. Unemployment has a number of negative consequences such a decreased income which is assumed to influence the subjective experience of unemployment. The negative macroeconomic shocks in Macedonia have been mitigated due to the strengthened role of alternative labour market adjustment mechanisms such as: employment in the informal sector, emigration and inactivity. However, their impact on the unemployed workers’ perceptions of stress and future labour market prospects is less clear-cut. In this paper we use results from a survey carried out on a sample of unemployed workers in Macedonia in order to identify the psychological implications of unemployment by assessing the perceived stress and employment prospects with particular reference to the role of alternative labour market adjustment mechanisms.

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