Labor markets and mental wellbeing: Labor market conditions and suicides in the United States (1979–2004)

• Labor market conditions matters the most for the mental wellbeing of prime working-age men and women (35–64).
• Higher unemployment rates for prime working-age men and women are positively correlated with their higher suicide rates.
• Larger deviations of unemployment rates from their trends are positively correlated with higher suicide rates of 35–64.
• Larger volatility in overall unemployment rates is positively correlated with higher suicide rates of 35–64.

Applying a fixed-effects panel analysis to a 1979–2004 panel data of the U.S. states, this essay re-examines the link between labor markets and suicides in the United States. By disaggregating the analysis across genders and three different age groups (20–34, 35–64, and 65+) and analyzing several other labor market indicators besides overall unemployment rates, the essay finds that deteriorations in labor markets is associated with hikes in suicide rates of only men and women between 35 and 64 years of age. In other words, higher group-specific unemployment rates, larger deviations of unemployment rates from their group-specific trends, and larger variance in the overall unemployment rates are all associated with higher suicide rates of adults aged 35–64, or prime working-age adults. These findings suggest that the mental wellbeing of prime working-age adults is more dependent on labor market conditions than people in other age groups. Therefore, during period when prime working-age adults are facing unfavorable labor market conditions, U.S. suicide prevention programs must especially target this group of population.