The Interconnected Effects of Financial Constraints, Social Connections, and Health on the Subjective Well-Being of the Unemployed in Abu Dhabi

Research consistently highlights the substantially negative effect of unemployment on subjective well-being. This study’s objective is to provide deeper understanding of the complex nature of the associations between happiness and unemployment, which could enrich the duties of social policymakers when designing policy frameworks to improve the well-being of the unemployed. The methodology in this paper employs a path analysis using the Abu Dhabi Quality-of-Life survey (third cycle) data with 4815 unemployed respondents. The present study suggests a comprehensive path model to recognize the most significant associates of the happiness of the unemployed. Key findings indicate that income satisfaction and the ability to make ends meet have the highest effect on the happiness of the unemployed. The model also reveals the strength of different mediation roles played by family connection, quality time with family, and the ability to make ends meet, suggesting that financial difficulties resulting from unemployment can impact social relationships. In addition, the significant differences found between demographic groups based on age, marital status, gender, and educational attainment are also investigated. Policy implications are briefly discussed.