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Some employees are fortunate to have the financial benefits of a continuous work history as described in the October 1995 issue of Wyoming Labor Force Trends. Other employees may benefit financially from changing jobs as described in a research report in progress by the Research & Planning Division (R&P). Both of these segments of workers have a steady employment history, either in the same or different jobs. In contrast, unemployment has affected organizations and people across employers, geographic areas and occupations as evidenced by recent layoffs. For example, a newspaper headline of January 3, 1996 reads: "Bell tolls for 40,000 at AT&T." The reductions include 10,000 jobs in occupations such as financial operations, human resources and information systems to enhance the competitive position of the organization. Other substantial layoffs include IBM (63,000 employees), Sears (50,000), Boeing (28,000), and Digital Equipment Corporation (20,000). In the public sector, there are furloughs and reductions in forces (RIFs). In November 1995, 800,000 nonessential government employees were on furlough. A timely research question is: How does this environment affect the job stress of employees in organizations? Increased stress for some employees may be reduced with adaptive coping responses such as better communications and use of labor market information (LMI).
In this article, a distribution of employment will be discussed which includes full-time employment (40+ hours per week), underemployment and unemployment. A definition of labor market information is provided and a model of job stress/distress is developed, distinguishing between stress and distress. In this model, labor market information, organizational planning, individual job performance and career strategies may moderate the influence of job stress/distress. The research of Hans Selye, Ph.D. and other researchers in different divisions of psychology are presented. Overtime work beyond 40 hours per week may become a source of stress for some employees when it increases to 60/70 hours, but because of time and space constraints, overtime is only peripherally addressed in this article. While there are probably important sources of stress such as interpersonal relations, individual differences and health problems, this article will focus on the issue of job stress.
In between the two extremes of full-time employment and unemployment, other employees may be working part-time while desiring full-time employment or working at jobs which under-utilize their skills and educations. A recent research study on underemployment by the Department of Labor, State of Nebraska, summarizes several major findings on the state level which can serve as research hypotheses to be tested in Wyoming:
After considering the concepts of employment and underemployment, how can labor market information be related to them? First a definition of LMI: LMI is an applied science; it is the systematic collection and analysis of data which describes and predicts the relationship between labor demand and supply.
"Labor supply is defined and measured in terms of employment to population ratios, skills of the employed and unemployed, educational characteristics, personal and group barriers to employment. Labor demand is defined and measured in terms of prevailing wages and benefits, current employment and job vacancy levels, conditions of work, occupations and skills of the employed and unfulfilled skills needs of employers." (The States' Labor Market Information Review, Interstate Conference of Employment Security Agencies.)
With LMI, one can study trends of employment, under-utilization and unemployment (refer to "The Uses of Unemployment Insurance Claims Information") and relate them to the concept of job stress for segments of employees as defined in the literature of industrial psychology1 . The data indicates that layoffs, job furloughs and RIFs are a fact of life even in profitable corporations and in government. The applied psychological research by Hans Selye, Ph.D. is directly applicable to the concepts of unemployment and underemployment. His research demonstrates an important difference between the concepts of stress and distress. Stress is defined and measured as a stimulus which may produce greater adaptive behavior, such as a systematic career search during unemployment. When stress increases above an adaptive level for employees, the situation becomes one of distress or non-adaptive behaviors. This distress level could relate to periods of denial, depression, and interruptions in the job search process during unemployment.
The Figure, "Model of Stress Levels for Job Security", illustrates the proposed relationship between levels of job stress and number of hours worked from unemployed to full-time (40 hours). This Figure is designed to illustrate the model concepts of employment, time and level of stress associated with job security.
Another behavior in an environment of distress is the restriction of rational alternatives as described in the literature of industrial and counseling psychology2. In an environment of distress, one logical adaptation is to increase the field of choices and behaviors to successfully reduce the higher level of stress. However, a survey of the literature suggests an unfortunate negative correlation between the levels of job distress in the environment and coping mechanisms to reduce the stress. A negative correlation between job distress and coping mechanisms means that as job distress increases, employees may experience a narrowing of adaptive choices to handle crises such as furloughs or unemployment. LMI data could be used to increase the level of cognitive choices. There is at least one important caution in interpreting this information: correlation does not imply causation. In other words, the predictors (job distress and coping mechanisms) may vary together but one does not necessarily cause a change in the other. Another important point is that this information pertains to job distress, an environment in which the stimulus has increased to the point of creating non-adaptive responses.
Labor market information can be used by employers, employment offices, job seekers and researchers to help reduce job stress. "It [LMI] helps individuals and groups know and understand what jobs are available, the skills required for occupations, and which industries are growing or declining." ( LMI--Informed Decision Making, Taking the Guesswork Out of It, which is a publication of R&P). Research & Planning offers many publications which detail specific information relevant to Wyoming employment.
Another LMI publication now available from R&P is The Directory of Licensed Occupations in Wyoming which provides useful information for unemployed and underemployed workers. Specifically, it lists occupational job growth projections and average wage and salary information for specific occupations. This data can also help people entering the workforce to plan for their future careers on the basis of labor market data on the predicted demand for employees in a range of specific, licensed occupations. The publication could be pictured as a bridge between LMI data and individual career planning efforts, which could be of direct and practical benefit to unemployed workers.
Relatively new sources of LMI are found in the Wyoming Employment Resources home page which includes Wyoming's Job Bank and America's Job Bank on the Internet. These databases list specific job openings in Wyoming and how to apply for some of these jobs. The Internet offers a pioneering opportunity to provide current, continuously updated information on the supply of labor and the demand for specific occupations. This LMI is useful to job seekers and also to potential employers who may be interested in relocating to Wyoming.
Job distress may be related to the uncertainties of employment and to the ambiguities associated with temporary job furloughs. Some social psychologists3 propose a relationship between employee "expectations" associated with rewards and job performance and the amount of time and energy devoted to organizational goals. Employees weigh the rewards, costs and options involved in continued employment in this model and compare them to their expectations of rewards. It is a conceptual framework of "mutual" interactions between employees and organizations. If the expectations differ significantly from the level of outcomes, the situation may become one of distress for the employees and the organizations.
In these distressing job situations, how do organizations and employees develop effective coping strategies? Research in industrial psychology can provide some directions when it is combined with labor market data. This psychological research encompasses coping strategies and organizational planning in crisis situations. The first given (accepted assumption) is that the essential functions of the organization must continue. For example, hopefully the organization can still provide rewards for excellent job performance. The second given is that "it [the distressing situation] is not business as usual." A narrow emphasis on daily productivity will not suffice to cope with increased levels of stress. One successful strategy is to increase communications between management and employees across all levels of the organization in temporary stressful situations. In permanent RIFs it is more appropriate, if financially feasible, to offer out-placement services, including information on current projections for growth industries.
In this model, LMI and career planning are thought of as two practical options which may be used to moderate the stress level of underemployment and unemployment. For example, if some underemployed workers combine LMI and career planning strategies, it may reduce the effects of job stress by decreasing the time spent in a job search and finding a career which matches their education and skills. Hopefully, the labor market will have occupations which are growing in which they can apply their time and efforts. The goal is a prevention strategy: stop job stress from becoming distress.
In summary, many people know intuitively that unemployment and underemployment are related to job distress. The experimental data may support this concept of psychological distress. A future direction of applied research could focus on mathematical models and data collection necessary for a longitudinal study of this model. Fortunately, labor market information can be used by employees, career counselors and researchers to help alleviate symptoms of distress and to develop adaptive coping strategies. Data on labor markets, wages and growing industries can be integrated with industrial psychology1 and career planning information on the supply side of education, skills and training. Furloughs and RIFs are presently occurring in many occupations and industries. The "global village" of international trade and high technology offers opportunities and challenges to individuals, organizations and nations. Employment can be a source of financial and psychological rewards or distress for employees.
Fay Walther is a Principal Statistician and LMI Supervisor with Research & Planning.
1 Industrial psychology is defined as an applied specialization within psychology which focuses on organizations, work and employees.
2 Counseling psychology is defined as an applied specialization within psychology which focuses on the individual person and mental health.
3 Social psychology is defined as a special field within psychology which focuses on population segments.
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