Social and Psychological Effects of Joblessness in Middle Age - Essay Example

Joblessness Introduction The general perception of life among most individuals is to study hard and get gainful employment so that they can provide the basic necessities and some small luxuries for their own sake and for their families. Unless a person is born with the proverbial ‘silver spoon’ or is otherwise engaged in business or self-employment, getting a job is the only option. In such a situation, the state of being unemployed or the concept of joblessness is something that is inconceivable, primarily because of the loss of income and status. But joblessness is a stark reality especially during the times of recession as seen in the US economy in particular and the world economy in general. Apart form the recession, dynamic changes like globalization and free trade has had a negative impact on the employment situation in the United States. Jobs have been outsourced at the cost of employment back home, leaving many people in a state of joblessness. This paper studies the impact of joblessness among the middle and upper aged population in the United States with reference to sociological perspectives. Thesis statement: Middle aged joblessness results in financial and psychological stress, but has one advantage in the sense that such persons are better equipped to teach their children how to cope in the ‘new risk economy’. Social and psychological effects of joblessness in middle age: During the course of this research, four arguments will be discussed. The first one is that, the new risk economy is harsher on middle aged and older employees with regard to being jobless. The second is that, in times of recession in the economy, qualification, experience and age is given preference over youth and lack of experience. The third argument is that joblessness will lead to lower levels of commitment and will result in unemployed middle aged and older workers to become free agents. The fourth is that the life course of the jobless has changed drastically when shifting from the Fordist era to the new risk economy era. According to Goldsmith et al, unemployment has two adverse effects on the society, the economy, and the individual and their families. For them, “one is the output foregone that could have been produced if unemployed workers had been productively employed. The second is the psychological damage suffered by unemployed workers and their families” (Goldsmith, Veum & Darity, 1996). Companies are now looking at minimizing costs in order to remain competitive, and one of the ways in which this is accomplished is through reduction in the number of employees. Increasing globalization coupled with technological and transportation advances has resulted in many companies shifting operations and jobs to other countries that are equipped with a sound technical base and a capable workforce willing to work for much lower compensation. The city of Bangalore in India, has been responsible for the term Bangalored, meaning, becoming jobless due to shifting of a particular job or operation to another region and country (Kelsey, 2008, P. 206). This city, among many others primarily in the developing world is known for its capability to undertake jobs like software programming and call centre operations. Experts call this trend the ‘new risk economy’ where opportunities abound coupled with lack of job security. According to Mendenhall et al, “The job market of recent years has not been kind to workers, especially older workers with long tenures. During the period we focus on here (2001 to 2003), 11.4 million total workers lost jobs, 5.3 million of whom had held their jobs for three years or more (“experienced” or “long-tenured” workers)” (Mendenhall, Kalil, Spindel & Hart, 2006, p. 4). It appears that the new risk economy has adversely affected the employment opportunities of older workers more than the younger ones. With no strict laws on providing job security in the United States, it is common to find companies either downsizing their workforce or shifting operations and jobs elsewhere. Apart from this trend, the current economic situation has also contributed towards joblessness in the country as a whole. The Bureau of Labor Statistics of the U.S. Department of Labor reports that “the share of families with an unemployed member rose from 6.3 percent in 2007 to 7.8 percent in 2008” (Bureau of Labor Statistics, 2009). The net result is that people, especially the older ones are finding themselves without a job due to the new risk economy and the current recession facing the world today. There are some relevant social perceptions with regard to employment in any society. One of them is the concept of structural mobility, which is primarily concerned with the movement of social classes from one position to other. Therborn states that “if there were absolutely no mobility in society, everyone would work in an occupation in the same class that they grew up in” (Therborn, 2006, p. 121). In other words, if a person was employed as a clerk in an organization, he or she would occupy the same position and probably move up the corporate ladder, but stick to the same organization till retirement. Structural mobility has been defined as “Mobility resulting from a change in the distribution of occupations, expanding opportunities in some and decreasing them in others” (Structural mobility). This implies that mobility can result from increasing as well as decreasing opportunities or other fundamental changes in the society. In case there is a boom in the economy requiring labor, there will be a shift from one sector to another. According to Therborn above, the industrial revolution which resulted in mass movement of labor from agriculture to employment in business and manufacturing organizations is an example of structural change. The current trend is a negative structural mobility resulting in loss of jobs due to companies wanting to be competitive in a highly globalized environment. But employment of older people during the current recession appears to be in contrast to the trend seen in globalization. Stanicek, referring to figures provided by the Bureau of Labor Statistics state that older persons, especially above fifty years of age were employed in larger numbers compared to younger workers. In other words, during recession, younger persons were found to be unemployed at the cost of older workers being provided jobs. Stanicek adds that “the increase of jobs by 925.000 in September, October, and November 2008 compared with the same period of 2007 in the age group of 55 and older suggests that experienced seniors keep their comparative advantages and can easily integrate flexible labor market even during a time of massive layoffs” (Stanicek, 2009, p. 5). Structural mobility appears to favor older employees in the US during times of recession. But this trend may change once the economy is back on its feet and older workers may find themselves laid off in large numbers. Another relevant social concept is the social dilemma associated with joblessness. According to the American Psychological Association this is “a situation in which one is faced with a decision to make a choice between that which will prove immediately rewarding to the individual but lead to a negative outcome for the larger group, and one which denies immediate benefit to the individual but will produce a common good in the long run” (Dean). The HR manager, at the behest of the management, is forced to lay off even their most sincere workers in the hope that the organization will survive at the cost of some laid off workers. Mendenhall et al, in a study involving 77 jobless white collar employees state that the prevalent sentiment among them was that their former employees were not fair to them. This is illustrated from the following sentence from the study – “At the time of their termination, the majority of our respondents (60 percent) reported feeling a significant lack of "corporate care," a term we developed to reflect a deep sense of betrayal, a lack of loyalty on the companys part and a sense of cold dismissal,…..” (Mendenhall et al, 2008, p. 197). The resultant feeling that arose among was that loyalty to an organization is pointless since it will not be reciprocated. This again can be an example of social dilemma. If employees remain uncommitted to their jobs for their own sake, the overall performance of organizations in the long run will be negatively affected. Another factor that is relevant to older employees is that they had begun their careers during the Fordist era, a time when mass production and job security was the norm. But this concept has changed to a market based approach where consumer is king. Aldridge states that “the Fordist era has passed; mass production has given way to flexible specialization, with products customized to the tastes of individual consumers. The guarantee of job security is acknowledged to be unrealistic in an age of fierce and incessant global competition” (Aldridge, 2003, p. 58). This sudden shift in structural mobility will certainly have affected the mindset of the displaced employees, once used to holding relatively secure jobs and opportunity to move up the corporate ladder. The end result according to Mendenhall et al is a change in the mindset that was more focused on self help rather than commitment to a particular organization. The study records the following changes in perception of the participants of the study. One thing that should be noted is the study limitations. The authors admit that they chose the participants with regard to convenience rather than on validity or representation. Moreover, the study was relegated to Chicago and hence need not be representative of a nationwide population displaced due to the age factor. One factor mentioned in the study is the adjustment or rethinking of the concept of ‘life course’ among the participants. Prout, in his book The Future of Childhood defines this term as “a sequence of stages or status configurations and transitions in life which are culturally and institutionally framed from birth to death” (Prout, 2005, p. 79).   In normal or say pre-Fordist environment, this sequence will consist of education, employment and retirement. But at present, it is more like education, employment, retrenchment, re-employment, or joblessness. So, the requirements of being employed depend on other factors like age, social policy, additional qualifications and skills, and education. In other word employees tend to be free agents and not loyal workers. Free agents are loyal to their families and homes and strive to develop their core competencies to organizations that require them. According to Ann Bruce, “If you’re the kind of worker who is always seeking out the next cool assignment in your company, or navigating your career path with boundary-less opportunity and zeal….” (Bruce, 2007, p. 28), it is a free agent mentality. The one difference in this case is that respondents in this study had no choice but to accept this mentality. Many of the participants in the study sought to augment their income be becoming trainers, consultants, taking tuitions, and even becoming drivers or chauffeurs. What should be noted is that midlife and beyond is a period of increased responsibilities that include looking after growing children, educational expenses, mortgages on assets like home and car, and risk of health related problems. Hence the psychological impact of joblessness during this period is extremely stressful when compared to a young person who has no other responsibilities other than looking after himself. In other words, as Lachman points out, it requires “balancing work and family responsibilities in the midst of the physical and psychological changes associated with aging” (Lachman). Being without income at this stage can be stressful unless the person has already managed to have considerable savings in the form of assets like bank balance, securities, and any other income generating assets. Moreover, the social stigma of being jobless can also be a factor. The respondents in the study resorted to other means apart from being free agents in order find employment. For example, they resorted to removing certain information like year of graduation and certain qualifications in order to be seen as eligible for interviews. This is because they thought that employers might consider the candidate to be highly qualified and experienced and hence the need to pay a higher compensation. This apparently strange phenomenon goes against established norms employability where qualification and age were considered essential, especially in the upper levels of management. Mendenhall referring to Smith calls this practice deprofessionalism. More than half of the respondents resorted to this practice. It appears that this practice is quite common when faced with the prospect of being jobless. Janice, a sixty year old HR person, laid off in 2002, uses more than one resume according to an article on the topic in the San Francisco Chronicle. The resumes were used to apply for the posts of HR manager, generalist, or assistant. John Rossheim writing for Monster.com also advocates this practice if the candidate is finding it difficult to obtain employment due to over qualification (Rossheim). Hence, it is no surprise that participants in the study did the same in this instance. The one positive aspect that has come out of being jobless in mid and old age is that the concept of generativity is put to good use. People who have experienced stagnation actively help their offspring to manage in this new risk society. Sherman quotes Levinson et al regarding this aspect – “To become generative, a man must know how it feels to stagnate – to have the sense of not growing, of being static, stuck, drying up, bogged down in a life full of obligations and devoid of self-fulfillment” (Sherman, 1987, p. 102). This attempt at generativity is seen in the study by Mendenhall also. It can be generally said that children of people who have undergone major problems or crisis is life will be better equipped to face the world by learning from their parents. One probable solution for the removing the state of joblessness is the concept of population transfer. According to the UN Sub-Commission on Prevention of Discrimination and Protection of Minorities, Population transfer, known also by a number of synonyms, involves the movement of people as a consequence of political and/or economic processes in which the State Government or State-authorized agencies participate” (What is population transfer, 2009). But the Mendenhall et al or other studies do not show such steps being taken up by the government. It could probably be due to the fact that this situation is spread across the whole nation, and also that older people may be unwilling to relocate even with governmental help. As mentioned above, they look at being free agents, working for lower salaries, or even finding employment in totally unrelated fields. Application – personal understanding from the study: As a person who will soon be looking for employment, the study has some new, interesting, and useful understanding for this writer. It is a well-known fact that the United States and the rest of the world economy in general are facing a strong recession. But the fact that older and experienced hands are preferred during such times was a new revelation. The new risk economy on the other hand gives preference to younger candidates. So, once the economy comes out of recession, prospects for employment will be advantageous to me. The concept of being free agents and showing more commitment for self rather than for the employer is also new information. I will keep this in mind when employed after completing my education. Another useful piece of knowledge was the concept of generativity. I have understood this concept and will try to act in such manner so that future generations are taught to survive and grow in this highly competitive and tough environment. Deprofessionalism was another new understanding even though this might not affect my prospects in the immediate future. On the whole the study gave me new insights into the state of joblessness among the middle- aged and older (laid-off) employees. It also gave me tips and knowledge about working in the new risk economy. Conclusion: Being in a state of joblessness for long periods is a harrowing experience for most people. This is especially so if the person reaches mid life and beyond. Such people resort to deprofessionalism and become victims of a negative structural mobility. They are again victims and perpetuators of social dilemmas. They also take up other jobs, often at much lower salaries and social status in order to tide over this situation. What should be noted is that older people have more personal and familial responsibilities when compared to the younger generation. So being jobless at this stage of life is all the more traumatic. But the one positive aspect is that the children of the long term jobless will be better equipped to face life due to the practice of generativity by their parents. Works cited Aldridge, A. E. (2003). Consumption. Wiley-Blackwell. Bruce, Anne. (2007). Be Your Own Mentor. London: McGraw-Hill. Bureau of Labor Statistics (2009, May). “Employment Characteristics of Families Summary”. Retrieved June 7, 2009, from the Bureau of Labor Statistics: http://www.bls.gov/news.release/famee.nr0.htm Dean, Carol. A Social Dilemma: Individual Gain or Common Good? Retrieved June 7, 2009, from the American Psychological Association: http://www.apa.org/ed/dilemma.html Goldsmith, A.H, Veum, J.R & Darity, W. (1996). “The psychological impact of unemployment and joblessness.” Journal of Socio-Economics, 25, 333-358. Kelsey, Jane. (2008). Serving Whose Interests? London: Taylor & Francis. Lachman, M. E. “Development in Midlife”. Annual Review of Psychology, 55, 305-331. Mendenhall et al. (2008). “Job Loss at Mid-life: Managers and Executives Face the New Risk Economy" Social Forces, 87. (Provided by Customer). Mendenhall, R, Kalil, A, Spindel, LJ & Hart, C. (2006, Nov). National Poverty Center Working Paper Series. Retrieved June 7, 2009, from National Poverty Centre: http://npc.umich.edu/publications/u/working_paper06-43.pdf Prout, Alan. (2005). The future of childhood. Routledge. Rossheim, J. “Resume Dilemmas Overqualified”. Retrieved June 7, 2009, from Monster website: http://resume.monster.ca/6919_en-CA_p9.asp Stanicek. (2009, Jan). The Social Agenda: the impact of the financial crisis on daily life, employment and incomes. Retrieved June 7, 2009, from the European Ideas Network: http://www.europeanideasnetwork.com/files/26_january_2009_stanicek.pdf Structural mobility. Retrieved June 7, 2009, from Webref.org: http://www.webref.org/sociology/s/structural_mobility.htm Sherman, Edmund A. (1987). Meaning in mid-life transitions. Washington: SUNY Press. Therborn. (2006). Goran Inequalities of the world. London: Verso. What is population transfer? (2009). Retrieved June 7, 2009, from Israeli- Palestinian Pro-Con.org: Read More