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ERIC Number: ED398423
Record Type: RIE
Publication Date: 1996-Jun
Pages: 5
Abstractor: N/A
Economic Change: Separating Fact from Fiction.
Workforce Economics, v2 n2 p3-6 Jun 1996
Although the general perception in the United States may be that downsizing in companies is pervasive and increasing, the facts show a slowing of the trend in downsizing and a net gain in employment. Many workers have found new jobs at or near their former pay rates, although only half of older workers are able to find jobs comparable to the ones they lost. The persistent anxiety among U.S. workers results because today's job eliminations tend to be permanent and white collar, caused by companies reengineering to meet changing economic conditions. More and more workplace restructurings reflect strategic or structural company decisions, with fewer resulting from downturns in business. Company responses include outplacement services, extended severance pay, extended health coverage, and job retraining. Companies that provide training after work force reductions see a strong increase in productivity and profits. Public policy should encourage more long-term unemployment insurance coupled with job training and the development of industry-based skills standards. (KC)
National Alliance of Business, 1201 New York Ave., N.W., Ste. 700, Washington, DC 20005.
Publication Type: Information Analyses; Journal Articles
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: National Alliance of Business, Inc., Washington, DC.
Grant or Contract Numbers: N/A