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

Chun-Chu (Bamboo) Chen (School of Hospitality Business Management, Carson College of Business, Washington State University, Vancouver, Washington, USA)
Ming-Hsiang Chen (Tourism and Social Administration College, Nanjing Xiaozhuang University, Nanjing, China and School of Hospitality Business Management, Carson College of Business, Washington State University, Pullman, Washington, USA)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 18 June 2021

Issue publication date: 9 August 2021

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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 well-being and an increased intention to leave the hospitality industry. Female and younger employees are impacted to a greater extent, while furloughed workers 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 how these distressing experiences affect career change intention.

Keywords

Acknowledgements

Declarations of interest: none.

Funding: none.

Citation

Chen, C.-C.(B). and Chen, M.-H. (2021), "Well-being and career change intention: COVID-19’s impact on unemployed and furloughed hospitality workers", International Journal of Contemporary Hospitality Management, Vol. 33 No. 8, pp. 2500-2520. https://doi.org/10.1108/IJCHM-07-2020-0759

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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