Resource replacement and psychological well-being during unemployment: The role of family support

• Study explored the potential latent benefits of unemployed individuals
• Latent benefits partially explained the relationship between family support and well-being
• Financial strain moderated the relationship between latent variables and well-being
• Study provides guidance to address psychological needs of those who are unemployed.

There is an established inverse relationship between unemployment and psychological wellbeing. However, little is known about the processes that underlie this relationship. Using latent deprivation, conservation of resources, and social capital to form a theoretical framework, this study explored the relationship between the latent benefits associated with employment, family support, and financial strain. In a sample of 174 unemployed individuals, latent benefits were shown to partially mediate the relationship between family support and psychological well-being. Additionally, this mediation was moderated by financial strain, with latent benefits being more related to psychological well-being in those with greater financial strain. These findings provide guidance in understanding how to better address the needs that contribute to psychological well-being in those who are unemployed.