Whatever Happened to the “Job for Life”?

GRAHAM * worked for a large Australian company for 37 years. In his late 50’s, he was suddenly given a few weeks’ notice that his services were no longer required. We can understand his perplexity, reflecting astonishment and deep concern for his future welfare. ‘Whatever happened to my “job for life,” which I thought was secure until I reached the age of retirement?’ Graham wondered.

Of course, losing one’s job is not unusual, nor is it something new. However, the magnitude of job loss on a global scale is new to this current generation of employees. Undoubtedly, there are many reasons for job loss, but a major one appears to be what is called downsizing. What is downsizing, and how has it come about?

The Changing Workplace

Economies today have become increasingly global. This came to be realized particularly in the United States in the late 1970’s when companies noticed that increasing numbers of consumers were purchasing cars, electronics, and many other goods produced overseas.

In an effort to become competitive and to reduce production costs, American companies began cutting the number of workers and improving methods and equipment. The technique used to reduce the work force became known as downsizing. The process has been described as “reducing the size of an organization’s workforce, usually through a combination of layoffs, early retirement incentives, transfers, and natural attrition.”

For some years it was blue-collar workers who were mainly affected by downsizing. But in the late 1980’s and the early 1990’s, this process began to include growing numbers of white-collar staff, particularly middle management. These trends soon affected all industrialized nations. And as financial pressure continued, governments and other employers searched for cost reductions through further downsizing.

For many workers, job security no longer exists. A trade union official states: “People who gave 10, 15, 20 years of loyal service have seen their implicit contract ripped up and they have been thrown out.” In her book Healing the Downsized Organization, Delorese Ambrose explains that in 1956 the term “organization man” was coined to describe the typical employee. She adds: “Whether he worked as a union laborer or as a manager, he turned over his economic well-being, social life, and loyalty to the organization in exchange for security—a job for life. Clearly, this pact has been broken in the modern corporation.”

Millions of workers around the world have lost their jobs to downsizing, and no group of employees has escaped unscathed. In the United States alone, the number of employees involved has been substantial, with millions losing permanent jobs. Similar downsizing has occurred in many other countries. But these cold statistics alone do not convey the human misery behind them.

 The Adverse Effects

Graham, mentioned at the beginning of this article, said: “You suffer some real psychological damage.” He compared his dismissal to “an illness or a bruising physical encounter.”

When loyalty is not rewarded, people feel betrayed because the sacrifices that they have made for the company are not valued. Trust is lost, especially when many chief executive officers receive huge payoffs for downsizing the company. Additionally, the unemployed person’s ability to manage mortgage payments, other debts, health care for family members, and school fees and to keep up his or her life-style, hobbies, and personal possessions is jeopardized by the sudden loss of regular income. This results in feelings of despair and worthlessness.

Since stable, meaningful work contributes greatly to feelings of personal worth, imagine the devastating effect of unemployment on those who are disabled, unskilled, or older in years. A survey in Australia revealed that people between the ages of 45 and 59 were the most likely to be targeted for dismissal. Yet, this is the age group that finds it most difficult to adjust to the change.

Are there options available? Part-time employment or work at lower wages is certainly preferable to unemployment. However, that can result in a lower standard of living. And it has been found that only about a third of laid-off workers eventually get jobs that pay as well as their previous one did. This adds stress to family life.

Even current employment may not spell peace of mind. This is because the prospect of future job loss has a subtle yet devastating effect. The book Parting Company says: “Anticipating the loss of a job is like choosing the best way to be hit by a truck. You rarely get to test even the most ingenious ideas, because you usually don’t see the truck—or the ax—before it flattens you.”

How does unemployment affect youths? After a survey was conducted by a department of education and science, this observation was made: “One of the main external confirmations that adulthood had been reached was the attainment of full-time employment, which signalled the beginning of ‘real’ adult life, in an adult world and on adult terms, with concomitant financial independence.” So if it is felt that employment signals the beginning of real adult life, unemployment could be devastating to youths.

Surviving Unemployment

Dealing with the loss of employment has been likened to walking through a minefield.  The book Parting Company identifies the most frequent emotions experienced as anger, shame, fear, sadness, and self-pity. Coping with these is difficult. The author observes: “You’ve been handed a difficult assignment—determining your future. You haven’t asked for this assignment, you probably don’t know how to proceed, and all of a sudden you may feel very much alone.” And explaining their sudden dismissal to their family is one of the most difficult problems the unemployed face.

However, there are some practical ways to deal with the impact of downsizing. The first step is to downsize your way of life immediately by planning for and living a life-style that is simpler than what you have been accustomed to in the past.

Here are some suggestions that may help you to handle the situation, even if they do not solve it altogether. First, recognize that unexpected job loss is a reality in these times. So regardless of your age and experience, plan ahead for that possibility in the way you live your life.

Second, be careful about taking on any large debt for items that are not essential for sustenance and covering. Live within your means, and do not assume that you can cover debts with anticipated income from promotions or regular wage increases. The message of today’s economy is that there may be no long-term future to rely on.

Third, look for ways to simplify your life and reduce existing financial commitments. This includes shedding debts for items that are not essential to a reasonably simple, wholesome life-style.

Fourth, review your lifetime goals, spiritual and secular, and update them. Then you can weigh all decisions against your goals and assess the impact.

Finally, do not look longingly at the life-style of others in your community who are living less frugally, lest you begin to desire the things they have and be lured into their way of life.

These are a few suggestions that may help you and your family to avoid the snare of relying on uncertain riches in a very uncertain world and to keep free of many of the anxieties incurred by contemporary life-styles.

Former investment banker Felix Rohatyn is quoted as saying: “There is something fundamentally wrong in our society when one man’s unemployment generates another man’s wealth.” So fundamentally wrong is this system that soon it will be replaced with a world where the expression “job for life” will take on meaning beyond our present imagination.—Isaiah 65:17-24; 2 Peter 3:13.

[Footnote]

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‘There is something fundamentally wrong when one man’s unemployment generates another man’s wealth’

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Look for ways to simplify your life