The Deadly Downside of Job Loss

By Shannon

With news of our nation’s financial woes dominating headlines, many Americans (me included) probably get an uneasy stomach just watching the evening news. A struggling economy ultimately brings the risk of job uncertainty for many in the workforce. But an interesting article from ABC News reports that job downsizing during difficult economic times has the potential to be fatal to one’s health.

While the news itself may not be startling – the financial and emotional hardships associated with job loss are difficult for most – the research cited in the ABC News piece remains compelling. A Finnish study conducted between 1991-1995 (a period of severe economic downturn in that country) found that there was a five-fold increase in the risk of death from heart attacks apparent in the first four years after major downsizing.

Staggering findings as the U.S. remains in the early stages of what might shape out to be a considerable economic crisis of our own. But with findings like these, what are the learnings to be gained?

Dr. Nortin Hadler, the author of the ABC News piece, contends that we need a “soft landing” for the job displaced. He urges employers to analyze options like shared jobs, reduced workdays and transition assistance to help soften the impact of job displacement, especially for aging employees.

I agree with Dr. Hadler’s advice in the piece and think it is timely guidance for companies experiencing the hardships of the financial crunch. As employers begin to evaluate the need to make changes in the size and scope of their own workforces, it is a worthwhile exercise to consider if there are alternatives to the harsh practice of eliminating positions outright. While job cuts are inevitable for many, the flexibility that technology provides today’s workforce leaves employers with alternatives towards slashing positions outright. With American workers already facing stress resulting from the credit crisis and mortgage meltdown, it’s no surprise that layering in job loss has the potential to provide fatal results.

What do you think? How can employers better address the issue of downsizing to remain mindful of their employees’ well-being during tough economic times?

Add comment October 24th, 2008