The study was conducted to determine the correlation between unemployment
and psychological well-being among individuals who have been unemployed due to
the COVID-19 pandemic. It aimed to provide insights so businesses can adjust
accordingly to their employees and find ways to help reduce the unemployment rate
while improving their productivity in the process.
The primary data was collected through a survey questionnaire using Google
Forms. The instrument was adapted from the four scales discussed in the study by
Drugas (2013). The secondary data were obtained from the Internet and works of
literature related to psychological well-being and unemployment from a business
perspective. The participants were residents of Molino III, Bacoor City who have been
unemployed since the pandemic until the present time. The study took place from
September 2020 to June 2021. The researchers used a convenient sampling method
and descriptive statistical tools including proportion, weighted mean, Likert scale,
Pearson’s r or Pearson product-moment correlation coefficient, and two-way ANOVA
(analysis of variance). The survey was purely voluntary, and the researchers treated
the data with the utmost confidentiality.
Results showed that single, college students, younger female individuals, and
those working for less than five years were affected the most by unemployment. This
may be linked to the companies’ preference to keep seasoned employees because of
their knowledge, experience, and expertise. Findings also revealed that there is a
relationship between the duration of unemployment, in particular those who were
unemployed for less than six months, and the respondents’ psychological well-being

in terms of family satisfaction. However, there was not enough evidence to show that
there is a significant relationship between the duration of unemployment and the
psychological well-being of the respondents in terms of life satisfaction, affect balance,
and physical and mental health.
The researchers recommend that local government units (LGUs), public
institutions, and private companies consider promoting psychological well-being
through prevention and treatment. Governmental responses should target the
emotional effects of this pandemic by developing and extending sufficient public and
subsidized services, especially to younger people, such as free online counseling,
online support groups, and a dedicated hotline that can provide mental health
assistance to available community services. Private companies can also focus on their
corporate social responsibility initiatives, improve labor policies, and spearhead
webinars and workshops that can help business-minded employees in starting a
business. These may also help to improve or increase the employees’ life and family
satisfaction as well as their physical and mental health. 

This undergraduate thesis by Galima, Palo, Rosenas, and Tedranes (2021) investigates the correlation between unemployment and psychological well-being among individuals affected by job loss during the COVID-19 pandemic in Molino III, Bacoor City. Utilizing a descriptive-correlational design and data collected through surveys based on Drugas' (2013) psychological well-being scales, the study found that unemployment significantly impacts family satisfaction, particularly among younger, single, female individuals with less work experience. However, the results showed no strong correlation between unemployment duration and other well-being indicators such as life satisfaction and physical or mental health. The researchers recommend mental health interventions and business-community partnerships to support the unemployed and improve overall well-being. 

Galima, T. M. I., Palo, J. P. E., Rosenas, K. H. R., & Tedranes, C. J. G. (2021). Unemployment and psychological well-being: A correlation (Undergraduate thesis). Cavite State University – Bacoor City Campus.