Layoffs​—The Employee’s Nightmare

“It hit me like a ton of bricks. I was in a state of shock.”​—Communications manager, age 44.

“It’s a terrible blow to your self-confidence. You feel worthless.”​—Chief financial officer, age 38.

“What kind of economy have we created that sacrifices people in their prime?”​—Clothing executive, age 47.

WHAT experience did these individuals share? Each went through the traumatic experience of being laid off from work.

Look again at the ages of those workers. They were not novices, so they likely felt that they had a measure of job security. And they were at what many would consider their peak earning years. But the end of their employment was quick and unexpected. “They told me to clear my desk and pack my things,” said the communications manager mentioned above. “I was gone, just like that. Poof.”

What Happened?

Economic uncertainty is nothing new. In many countries, there have always been periods of relative prosperity followed by recessions or depressions. And the recent economic downturns experienced throughout the world, even before the war in the Persian Gulf, showed how fragile economies could be even after years of relative prosperity. Many people, some for the first time, realized that they could not take their jobs and incomes for granted.

The effect of the economic slowdowns on the work force was staggering. Companies were compelled to cut costs to the bone, often resulting in sweeping layoffs. In the wealthier, industrialized member states of the Organization for Economic Cooperation and Development, a total of some 25 million people were unemployed at one time.

“Almost every day I get calls from friends in large companies who have been let go,” said a home-interior designer. “A lot of the companies I work with are down to half the business they had a year ago.”

Layoffs have always been part of blue-collar life. In the recent downturn, an increasing number of white-collar workers also lost their jobs. “These are the economic icon jobs,” said Dan Lacey, editor of the newsletter Workplace Trends, “the jobs that gave us the ability to buy a house in a nice neighborhood and drive two cars.”

Many of those jobs were lost in the last few years. And the workers who were laid off found themselves, as Newsweek put it, “weighted down by mortgages, young families, big bills and an increasingly uncertain future.”

What Are the Effects?

There is a twofold impact to all of this: Laid-off workers are hit both financially and emotionally. The financial strain is obvious. With less income, one’s standard of living must be adjusted. And unemployment has an emotional effect as well.

For example, the outlook of young people toward job security changes. Sporadic employment becomes a normal, accepted way of life. The Wall Street Journal noted that off-and-on unemployment has turned many of Britain’s youths into “permanent adolescents.”

There are more deep-seated emotional implications for those who are laid off after years of steady employment. “When there’s a layoff,” said management psychologist Neil P. Lewis, “it’s not just losing a paycheck, but losing a bit of your self-concept.”

In fact, psychologists have noted that the trauma of being laid off is similar to the trauma associated with the death of a loved one and with divorce. Initial shock gives way to anger, which in turn leads to grief and then acceptance. “Some people go through it all in two days,” says Lewis. “Others take weeks and months.”

The emotional toll is also seen in that those laid off become more susceptible to alcohol and drug abuse. Despair can even lead to family violence or breakup. “Those feelings have to go somewhere,” stated Stephen Pilster-Pearson, director of employee assistance at the University of Wisconsin, U.S.A., “and one of those places, of course, is home.”

In an even more tragic reaction, a university graduate in Hong Kong chose to end his life after five years of unemployment. He stepped into the path of an oncoming train.

So when jobs are lost, more than the wallet is affected. Thus, it is imperative to see beyond the financial aspect of the problem. Highly charged emotions are involved, and families must pull together and unitedly work at solutions.

[Box on page 5]

The End of Economic Expansion?

In the past year, fear of turbulent waters in the sea of finance has been reported worldwide. Consider several examples:

France: “The world is reaching the end of the longest period of economic expansion that it has ever known. . . . If European countries do not have much to fear in the short term, thanks to the boost provided by German reunification, they cannot expect to escape completely. . . . The markets have seen the danger coming.”​—Le Monde, Paris.

Brazil: A recession in the United States would “inevitably be transmitted and felt in the other industrialized countries and, as a result, would create greater restrictions for the growth of exports from the less-developed nations.”​—Fôlha de S. Paulo, São Paulo.

Britain: “The British economy, with its deeply rooted inflation, high interest rates, and slow growth, also appears uninviting.”​—Financial Times, London.

Canada: “A lot fewer employers are looking for a lot fewer workers.”​—The Toronto Star.

Germany: “Parallels to the 1973 oil-price shock are already visible . . . as [are] signals of recession.”​—Neues Deutschland, Berlin.

Japan: “Land values are now like a hair-trigger bomb sitting at the heart of the world economy. If the bomb were allowed to go off and land prices fell, Japanese banks would implode as [loans] secured on Japanese land became next to worthless. This, in turn, would trigger a worldwide recession.”​—Australian Financial Review, Sydney.

However, the end of the Gulf War early in 1991 brought renewed hopes of an upturn in economic activity throughout the world. Still, it is evident that national economies are indeed fragile things, especially considering the enormous debt load that already burdens many countries.

Out Of a Job​—What Are the Solutions?

“It’s going to be brutal. Many businesses are broke, but won’t admit it yet.”​—U.S. financier.

MANY have already experienced the harsh reality of that dire prediction, made late in 1990. In some companies, “surviving” employees wondered if they would be next to be laid off.

What would you do if you lost your job today? It is the course of wisdom to be prepared. As the previous article pointed out, losing a job carries a financial as well as an emotional impact. Therefore, more is involved than simply paying the bills. Following are some guidelines that have helped others to keep financially and emotionally stable when faced with the loss of a job.

1. Do Not Panic

When Dominick lost his job, he had to give his house back to the bank and move his family in with his mother. His advice is to remain calm, no matter how extreme the situation may appear. “Job or no job, you won’t dry up and blow away,” he says. “I honestly had to learn that we weren’t all going to die.” Rather than flooding the mind with worst-case scenarios, calmly work at productive solutions.

2. Think Positive

Jim and Donna have four part-time jobs between them. However, they earn less than Jim alone earned at his previous full-time job. In spite of this, they have accepted it as a teaching experience for their five children. Donna stated: “Without the problems they’d have been better off in a material way. But they’d have missed the pitfalls that teach you how to live.”

3. Open Your Mind to New Types of Work

Even white-collar workers can choose to change professions and start over in new work. “People don’t look at alternatives until they are forced to,” said Laura, who was fired from an administrative job. “In the ’90s,” she noted, “people have to learn to be more flexible.” Trying to get the same type of work you are accustomed to​—or the same pay—​may only weaken your chances of finding work. This may at least partially explain why it often takes white-collar workers longer to find work than it takes blue-collar workers. So open your mind to the possibility of new types of work. Many have had success offering some kind of service to others, such as housecleaning.

4. Live Within Your Means​—Not Someone Else’s

A powerful tool in advertising is to create a “need” that did not previously exist. Often you are made to feel that everyone else (except you) is informed and acting upon that need. ‘This is the style everyone is wearing [except you].’ ‘The movie everyone is talking about [so why haven’t you seen it?].’ ‘The car everyone is driving [when will you buy it?].’

Similar persuasion may affect how we view and spend money. A friend takes an expensive trip. Suddenly you need a vacation. Another friend purchases a new car. Suddenly your car seems old, inadequate. Becoming envious of what everyone else is doing will only make you spend money you do not have, buying things you do not really need. Avoid such self-defeating comparisons.

Jim, the laid-off worker mentioned earlier, observed: “People crash when they can’t maintain the lifestyle they think they want. You only need to worry about food and shelter. The rest is truly irrelevant.” As the Bible recommends at 1 Timothy 6:8, ‘be content with sustenance and covering.’

5. Be Careful With Credit

A credit card can be an asset, but it can also be your greatest liability. Some use the credit card as a crutch. They use it to bypass completely the ‘can I afford it?’ question. The card becomes a painkiller that lets you spend without thinking about or feeling the effects of losing money.

In recent years a virtual credit-card craze has enveloped many countries. What are the results? A computer salesman from Korea who bought a new car with a credit card summed up the matter: “When it is time to settle my credit, I always feel terrible. It’s just as if I gave that money away.” In Japan nearly half of all those seeking financial counseling are in their 20’s. The 140 million credit cards in that land are largely held responsible for the huge debts of young people.

So be careful with a credit card. Use it, but do not let it use you. Do not let it blind you to your true financial status. This will only add to the stress of losing a job.

6. Keep the Family United

In a survey of 86,000 people, more than a third said that money was the number one problem in their marriage. Another study found that money caused the most fights. “Differing attitudes toward money can strain relationships,” said financial consultant Grace Weinstein.

Even a seemingly close-knit couple may have widely different views of money and how it should be spent. One may be a fanatical saver, the other a voracious spender.

If not talked out, money matters can snowball into family fights. “There is a frustrating of plans where there is no confidential talk,” says the Bible at Proverbs 15:22. And while discussing financial matters, try to understand and accommodate your mate’s views.

7. Keep Your Self-Esteem

Grace Weinstein noted: “For the man or woman who is no longer earning an income, there is the emotional problem of diminished status and reduced independence, both resulting in loss of self-esteem.”

Do not quickly conclude that you were laid off because you were not valued as a worker. Twenty-nine-year-old Rani was laid off just three weeks after receiving the highest possible raise in her level at her annual review. While being an honest, trustworthy worker may keep a person from being laid off, this is not always the case. So one need not take being laid off as a personal affront to his worth. Valued, reliable workers may be affected too.

8. Set Up a Budget

Many cringe at the idea of a budget. They feel that it represents confinement, something that will restrict them from buying what they want. Not so. A budget is a tool to help you achieve your goals, not restrict you. It is simply a system of control, a laid-out plan to tell you where your money is going and how to make it go where you want it to.

Surprisingly, many have no idea just where their money is being spent. Instead, they fall victim to impulse buying and then lament: “Where did it all go?” The need for avoiding such spending is especially important when times are difficult financially. The Bible wisely states at Proverbs 21:5: “Plan carefully and you will have plenty; if you act too quickly, you will never have enough.”​—Today’s English Version.

To follow this advice, keep a written record. Write down everything you spend for an entire month, categorizing your expenses. Also, keep a record of how much money is coming in. If you find that more is flowing out than is coming in, look at your expenses to find the source of the problem. Once you know what you spend and where you spend it, you can gain control of your finances.

Keep your budget flexible. In the first few months, mistakes will be discovered, and some expenses may be overlooked. Make adjustments and corrections until the budget fits your needs. A good budget will thus be your servant, not your master.a

The above guidelines may help a person to ride out a period of unemployment. But to be effective, these points must be balanced with a proper estimation of the true importance of money. Really, how vital is it? Should anything else come before money, even when one’s job is lost? We will examine these questions in the next article.

[Footnotes]

[Box on page 8]

To Prepare a Budget:

1. Calculate how much cash is coming in.

2. Keep a record for an entire month to identify where your money is being spent.

3. Prepare a budget based on the first two steps. Decide how much should be allocated to each category.

4. Make adjustments to your budget as needed.

[Picture on page 7]

Couples should communicate so that money matters do not turn into family fights

Something More Vital Than Money

“Our incentive system to this day is built almost wholly around monetary rewards.”​—Psychology Today.

NANCY and Howard had big plans after they married in 1989. They wanted a house, a baby, new cars, and an exotic vacation. They had the income to afford it. But suddenly both found themselves unemployed. The money saved for the down payment on a house had to be used for rent.

Nervous about the future, they had to postpone all their plans​—including that of starting a family. “Five years from now,” said Nancy, “I don’t think we’ll be back up to where we were. All that’s gone, and I don’t know if it will ever come back.”

How well this illustrates the devastating effect of losing a job! But it also exposes the illusory power of money. What is here today can be gone tomorrow. As the Bible realistically warns: “Your money can be gone in a flash, as if it had grown wings and flown away like an eagle.”​—Proverbs 23:5, Today’s English Version.

Accepting the transitory nature of money is easier said than done. “Money is the universal measure,” notes Psychology Today regarding common attitudes toward money. “We keep score by it, often even to ourselves.” The obsession with acquiring money has led even the well-off to chronic anxiety, depression, and other ills that have been humorously grouped under the catchy name affluenza.

The Importance of Wisdom

But there is something more vital than money. The Bible identifies it at Ecclesiastes 7:12: “Wisdom is for a protection the same as money is for a protection.” Then the verse adds a fact about wisdom that shows it to be superior to money: “Wisdom itself preserves alive its owners.”

Wisdom includes the ability to exercise sound judgment when we are confronted with challenging circumstances. When we are faced with job loss, sound judgment should tell us that life’s true value is not measured in dollars and cents. Sound judgment will also help us to keep our priorities straight, in focus.

What Are Your Priorities?

What do you put first in life? Is your job worth more than your marriage? Is your home worth more than your children? Is money worth more than your health? Each day we make decisions based on our incentive system, our priorities. When faced with financial problems, such priorities will dictate our course of action. What are your priorities centered on?

Jesus Christ said: “Happy are those conscious of their spiritual need.” (Matthew 5:3) Note that Jesus showed that spirituality is a need, a priority, not just a background quality to pursue when everything else in one’s life is stable.

It is a challenge to give that spiritual need priority while under pressure to provide for one’s family materially. Yet, those who do so are, as Jesus said, happy. While concerned about making ends meet, they are relatively free of the “untold agonies of mind” one experiences when putting money first. (1 Timothy 6:10, Phillips) Such ones also find comfort in the words of David as recorded at Psalm 37:25: “A young man I used to be, I have also grown old, and yet I have not seen anyone righteous left entirely, nor his offspring looking for bread.”

Satisfy Your Spiritual Need

Man’s spiritual need is inborn. He needs more than food, clothing, and shelter. Spirituality goes further, addressing such questions as, ‘Why am I here?’ and, ‘Where is this world​—and my life—​heading?’

Fear of an “economic apocalypse” has prompted many to sense their spiritual need. Newsweek reports: “Sales of prophetic books​—ones that interpret current events as Biblical signs of the end of the world—​are up 50 to 70 percent over last year.” However, to satisfy that spiritual need, one must search for accurate knowledge, not mere human speculation.

We invite you to investigate God’s Word, the Holy Bible. It contains practical wisdom to help you cope with life’s anxieties. More than that, the Bible can give you accurate knowledge of the meaning behind today’s “critical times hard to deal with.” (2 Timothy 3:1) By writing the publishers of this magazine, a free home Bible study can be arranged. Now more than ever is the time to seek the practical wisdom for the present​—and accurate knowledge of the future—​from God’s Word, the Bible.

[Picture on page 9]

Spiritual values are to be treasured