Psychologists say one belief separates workers who bounce back after layoffs from those who struggle

Losing a job can affect much more than a person's income. It often brings stress, uncertainty and a loss of confidence. While financial concerns are real, psychologists say the way people think about themselves during unemployment can also shape how they recover. One belief, in particular, seems to make a noticeable difference: believing that you can handle challenges and find a way forward.

A 2024 study published in the Journal of Career Assessment found that psychological coping self-efficacy — a person's confidence in their ability to deal with the emotional side of job loss — plays an important role in overall well-being during unemployment. The research was led by Ruogu J. Wang and Robert W. Lent and involved 602 unemployed workers.

Why self-belief matters after losing a job

The researchers noted that involuntary job loss can have major effects on mental health. While many earlier studies mainly looked at job searching and finding work again, this research focused on how people cope emotionally while unemployed.


The study found that people who believed they could manage setbacks, regulate their emotions and deal with the uncertainty of unemployment generally reported better emotional well-being and lower psychological distress. These coping-related beliefs remained important even after accounting for job-search behaviour and other factors such as financial strain and proactive personality.

According to the researchers, strengthening confidence in one's ability to cope psychologically may be just as important as improving practical job-search skills.

Training that focused on mindset showed long-term benefits

The findings are supported by earlier research published in the Journal of Occupational Health Psychology. In the study, psychologists Amiram D. Vinokur, Yaacov Schul, Jukka Vuori and Richard H. Price examined the long-term effects of the JOBS program, a workshop designed to help unemployed people.

The program did more than teach participants how to prepare resumes, search for vacancies and perform in interviews. It also included problem-solving exercises that helped people prepare for setbacks and adapt when things did not go as planned.

Two years after taking part, participants in the program had higher rates of reemployment, better monthly income, fewer depressive symptoms and stronger emotional functioning than those in the comparison group.

Confidence can be developed

The researchers also found that people who began with lower levels of job-search motivation and a weaker sense of mastery often benefited the most from the program. That suggests confidence is not a fixed trait but something that can grow with the right support and training.

The authors also cautioned that the evidence on the JOBS II program should be interpreted carefully. Although the study reported positive long-term outcomes, later assessments rated the overall causal evidence as low because of limitations such as unknown participant attrition and insufficient analytical controls. Even so, the combined findings suggest that believing you can cope with challenges may be one of the strongest psychological tools for recovering after a layoff.