• Loosing a long-term job is a life event which is likely to be a cause of stress to an individual.

• A person's response to stress largely depends on how the events are appraised or interpreted.

• This was explained by Lazorus in his Cognitive theory of stress.

• According to this theory, stress depends on his primary or secondary appraisal. A new or changing event is positive, negative or neutral.

• A negative event, such as loosing a long-term job, can be appraisal for its harm, instead a challenge.

• If it is appraised as a threat, which may result in future damage, it will result in high levels of stress.

• If it appraised as a challenge, then the individual, who lost the job, will have more confident expectations of the ability to cope with the stressful event, overcome it.

• If appraised as a harm, assessment of the damage, which has already been caused by the event, will result in high stress.

• Through secondary appraisal, one's coping abilities and resources are analysed as to whether they are sufficient in meeting the harm, threat or challenge.