Did you hear the news last Friday? More than one million people in the USA have lost their jobs in the last three months. One million job–losses - that's a lot of jobs!
One million people losing their jobs in three months works out at an average of 333,334 per month or, (assuming a 22 day working month,) 15,000 people per day, or 1,875 per hour per 8 hour day – mind-numbing figures. If one assumes an average household of four people, this means that 1,333,336 people a month or 60,000 per day are being directly affected by layoffs. If this was a disease it would certainly qualify as an epidemic!
The worst thing about epidemics is the fear they create, and here too, the definition seems appropriate. 60,000 people a day losing a significant proportion of their spending power as a consequence of redundancy undoubtedly has fear-inducing ripple effect as other people think:
- What effect will this have on my business or income?
- Will I be next?
- I’d better be careful and spend less, just in case
It thus seems self-evident that mass lay-offs or a redundancy epidemic on this scale simply exacerbates and compounds the downturn and makes any recession so much worse. Yet the practice is not confined just to the US and is clearly pervasive. But why?
I have just launched a new website probing this question, showing why mass layoffs are counter-productive, even for the organisations that resort to them, and putting forward some viable alternatives that would be better for everyone. To learn more just click here or go to www.alternativestoredundancy.com. There are at least 60,000 good reasons a day to do so.