Credit crisis begins to take human toll
It is not only bonuses that have come crashing down during the recent economic decline, but also the number of divorce papers hitting the doormat.
Research commissioned for City law firm Mishcon de Reya revealed that while half the workers in the Square Mile had seen their bonuses cut by up to £40,000 this year, few have faith in the longevity of wedded bliss without the buffer of the financial security to which their other halves have become accustomed.
Research commissioned by Sandra Davis in the firm’s family law department found that 21 per cent of workers quizzed are plagued by concerns that spouses may be seeking divorce advice before the crunch worsens, so as to exploit potentially lucrative pay outs. And 79 per cent fear marriages are more likely to break down during an economic downturn.
The mental health of stressed workers has also become an increasing problem.
Dr Michael Beary from the Priory Clinic in North London has seen an increasing number of people with work-related stress, anxiety or depression since the credit crunch: amongst the causes are long working hours and a lack of job security.
Beary said that a little stress can increase productivity. However, all too often it is ill managed. In 2000 mental health problems cost the UK £9bn through NHS costs, lost working days and 2,615 deaths.
Dr Beary warned that mental health problems were often dismissed or stigmatised, but emphasises that “Susceptibility to mental illness is part of the human condition – no one is immune”.
Economic woes can also exacerbate problem behaviour such as excessive gambling. Dr Bowden-Jones of private mental health group Capio Nightingale specialises in treating people with addictions, specifically gambling, and has found that a poor economy can encourage gamblers to seek help.
She said: “We do notice that in a climate of anxiety, where people are frightened about losing their homes, their jobs, or their status people can rely on their addiction to get them through. It is a source of tension release or escapism.”
However, fears that the addiction, coupled with the potential depletion or cessation of income, can persuade some problem gamblers to seek help.
Expert Views: What is the potential human impact of the credit crisis?
Sandra Davis (Mischon de Reya): Our study among City analysts, stockbrokers and hedge fund managers shows that the majority fear marriages are more likely to break down during an economic downturn. Most concern is among those who have been married for between three and seven years with those who have been married less than two years least concerned.
Michael Rendell (PriceWaterhouseCoopers Human Resources Services): Employers are obliged to look after staff wellbeing, especially during a downturn when employees’ relationships are under stress. It’s simplistic to say that lower bonuses lead to higher divorce rates, as the issue is far more complicated than that, but this is a wake-up call to employers – they need to recognise warning signs, manage staff stress levels and provide support.
Dr Henrietta Bowden-Jones (Capio Nightingale): We do notice that in a climate of anxiety, where people are frightened about losing their homes, their jobs, or their status people can rely on their addiction to get them through. It is a source of tension release or escapism. However, a poor economy allows borderline or problem gamblers to take a longer term view of their situation and seek help.