I'd be surprised if the people I worked with would think twice before working with someone that's been in psychiatric care, though I can't be sure, because I don't know that any of them did. I know that I wouldn't care. I have friends that stayed in hospitals for psychiatric reasons: they'd be great to work with, I think.

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>huge taboo to have your employer or your fellow co-workers know that you have been institutionalized in the past for mental health problems

Depend if you have the right trendy label that HR is in love with then you will get more and better jobs because if it.