Unemployed or a Survivor - Which Is Worse?

Unemployed or a Survivor

Which is worse?

August 5, 2009

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Abstract

Employment layoffs in the past two years have touched all of us. Whether we are the victim, we know a friend or neighbor who has lost their job, or we are one that works at a company and experienced the layoff of co-workers. We begin with looking at some of the figures of what our current economy has brought to so many of us and then continue with a more in-depth analysis from the University of Colorado's Institute of Behavioral Science on the effects to those left behind. If managers and business owners what to bounce back and regain their strength they should give some thought to institutes study and how it may be affecting there workforce and their bottom line.

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Whether you are laid off or still working the state of employment that we are being exposed to everyday is affecting many people with health and physiological problems. The most recent figures, "The number of unemployed persons (14.7 million) and the unemployment rate (9.5 percent)" (Bureau of Labor 2009). The headlines in CNN News read, "Annual loss biggest since end of World War II" and they publish charts from U.S. Department of Labor Showing the totals for 2008 and dramatic increase throughout the year (Table 1) and another comparison number by years (Table 2). (Goldman 2009)

The numbers do not stop there we continue with the "underemployment" rate. These are the people who are too discouraged to look for work as well as those working part-time because they are unable to get full time jobs. "The Underemployment rate increased to 16.5 percent in June compared to 10.1 percent in a year earlier. For those 45 and over, last month's unemployment rate was 6.9 percent compared to 3.4 percent in June 2008 -- "hovering at its highest point on record," says Matthew Freedman, a professor in the ILR School at Cornell University. (Wharton School 2009).

The nation now has the same number of jobs as in 2000 -- but 12.5 million more workers. Writer Chris Wilson posted an interactive map on the internet in his article, "When did your County's Jobs Disappear? The map of the US is displayed and then it fills with dots over a two year time period on where in the country the jobs are disappearing and what states have been hit the worst. This map is quite interesting to see the changes and one can view his map at http://www.slate.com/id/2216238/.

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The data could go on and on about how many of us are facing a really tough time but what about those that are still working? Unrealistic expectations are making workers angry and ill and cost American businesses billions. All of us have had stress at some time, its normal; however in today's workplaces there is a feeling of continuous pressure from many sources. It may be too large a workload, conflicts between work and family priorities, or the fear of job loss. When these pressures begin to mount morale in the workplace goes down. There are increases in absenteeism; team members become irritable and indifferent toward their job responsibilities.

Managers should take the time to look at how employee stress may be affecting their company. Business and Health.net reports that twelve percent of all unscheduled absences in 1997 were due to stress and that was twice the number reported in 1995. They further reported on a study by the American Society of Chartered Life Underwriters & Chartered Financial Consultants which stated that nearly half of the 1,300 workers surveyed stated in some situations acted unethically and sometimes illegally on the job due to stress. Cutting corners on quality and covering up mistakes because of undue pressure were most commonly sited. Also high on the list were abusing sick days, falsifying reports and lying to supervisors. (Schiff 1997)

In the wake of all the downsizing and layoffs those that remain are dealing with a great deal of stress but researchers are proving there are physical and physiological costs to those that are still working. The University of Colorado at Boulder Institute of Behavioral Science Research Program on Political and Economic Change studied the effects of employees left behind in the Physical and Mental Health Effects of Surviving Layoffs; A Longitudinal Examination.

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The main focus of the study was not the study of the health effects of those laid off from downsizing but to show how "complex and multifaceted" the downsizing process is to those still working. In other words they collected the statistical data to show that employees do not experience the layoffs in a homogenous manner. Employees may handle the changes with different attitudes and behavior. If managers understand these differences and when the effects may be most severe then they can focus on intervention methods to benefit not only the employee but the organization as well.

The research first outlined the different types of employees or employee contact. One type is employees that are aware of the layoffs but have minimal personal contact with the situation. Another type of employee is those that will feel the threat because they have been targeted or in the area of target for a layoff. Those feeling targeted will know this because of the WARN act. The WARN or Workers Notification Act applies when companies plan large lay offs or plant closings and they are required to give employees 60 days advance notice of the action.

Employees of companies may also be exposed to a restructuring of some type. In this case the people may be moved to another department or reassigned job duties. In the study this accounted for ten percent of the workers. For this group it was stated that the employees experience a disruption in social relationships, increase job demands, role uncertainly, and increased feeling of job security. The last type of employee in the study is one that witnesses the layoff of close coworkers as in within the same department or in another department but they were a close friend. Even though this type did not experience the layoff they may experience uncertainly and anxiety and perhaps they now have increased workloads.

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Duration