LO & Big Layoffs LO5605

Rol Fessenden (76234.3636@compuserve.com)
13 Feb 96 20:40:24 EST

Replying to LO5488 --

Sb: LO and Big Layoffs LO5488

Wolfgang brings a European viewpoint on unemployment.

Rol Fessenden wrote:

> I feel a lot of concern about downsizing, but the employment
> statistics do not really support this. The reality is that even more
> than 3 million jobs were created in the last five years, and as a
> result, unemployment is now at fairly low levels.

WS: I cannot really agree with that, at least not for central Europe. It
may be true that the USA faces a different situation, but here in Europe
the real rate of unemployment goes up to 20-30% in most developed
countries. The point is that this number consists at least of two parts:
the 'official' unemployed people and the early retired people. We tend to
become 2/3 societies, where only 2/3 has a job (and still a high income),
but the other 1/3 is faced by low income and unemployment.

**** end quote ****

Yes, I was talking about the US. Unemployment is considerably higher in
Europe. Germany is now 10.8% counted, and as you say, even hgher
uncounted. I have no information regarding 20-30% unemployment. I have
read that the high social costs associated with employment are
contributing to the situation in Germany, but I do not know that for
myself. Would you comment?

*** start quote ***

I said:
> The population of middle managers -- primary victims of downsizing --
> is essentiaLy unchanged over the last 10 years. Unemployment among
> middle managers is very low -- around 2%.

WS: Primary vicitms of downsizing are also workers, and not only middle
management. Middle management is still able to protect its self-interest,
and before middle management must leave a company, it is very likely that
the people at the bottom of the hierarchy has to leave.

*** end quote ***

The generally accepted point of view in the US has been that in the last
five years middle management was the primary victim of downsizing.
However, the statistics do not bear out that anyone has been a long-term
victim (US only) because unemployment is low by current historical

 Rol Fessenden
 LL Bean

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>