Well-being and career change intention: COVID-19's impact on unemployed and furloughed hospitality workers

ABSTRACT

Purpose - This study aims to examine the psychological distress experienced by unemployed and furloughed hospitality workers during the COVID-19 crisis and further investigate how this distress affects their career change intentions. Design/methodology/approach - Derived from a sample of 607 unemployed and furloughed hospitality workers during the COVID-19 pandemic, the data for this research are analyzed using structural equation modeling. Findings - This study reveals that unemployed and furloughed hospitality workers are financially strained, depressed, socially isolated and panic-stricken due to the pandemic's effects. These effects lead to impaired wellbeing and an increased intention to leave the hospitality industry. Female and younger employees are impacted to a greater extent, while furloughedworkers received fewer impacts compared to their laid-off compatriots. Research limitations/implications - This study suggests that lockdown restrictions need to be implemented more deliberately, and the psychological well-being of the hospitality workforce deserves more immediate and continuing attention. It advises that hospitality businesses consider furloughs over layoffs when workforce reduction measures are necessary to combat the financial crisis. Originality/value - This study adds to the current literature by examining the impact of the COVID-19 pandemic from the employee perspective. New insights are offered on the psychological toll of workforce reduction strategies during the financial fallout and howthese distressing experiences affect career change intention.