Insee Première · March 2021 · n° 1848

Being in a couple cushions the shock of job loss

A period of unemployment, moving to part-time work, leaving a permanent contract job or taking retirement can weaken a household’s financial equilibrium.

Job loss has the heaviest impact. In the period from 2011 to 2015, 11% of people fell below the poverty line the year they lost their job. Their standard of living fell by an average of 4% in comparison with the previous year, when they had been in paid work. That drop is greater for people living alone and those living in inner-city areas. In a mixed-sex couple, the effect of the man losing his job is, on average, greater than if the woman loses hers.

Moving to part-time work has a more moderate impact on standard of living, especially if it is the person’s own choice, notably with the arrival of a new baby.

On average, the standard of living of employees who leave a permanent contract post for another type of employment contract increases, particularly for the youngest and those in employment for only a short time the previous year.