St.Louis Business Journal
A BALANCE SHEET FOR WORK IN AMERICA

By Anna Navarro

January 1999  

Author's note: Client stories in this column are based on actual situations fictionalized to protect privacy and told with permission.

As a career strategist, I periodically take stock of the state of work in America.

Here is my balance sheet of changes in the workplace, both good and bad:

1. Longer hours. Over the last two decades, time spent on the job has grown by nearly a whole month per year, while the amount of paid vacation and sick leave has declined by almost four days.

2. Static Standard of Living. Despite the dramatic increase in work effort over the last 20 years, the average family hasn’t dramatically improved its standard of living. While income has been going up in the last year, average wages remain about the same today, after adjusting for inflation, as in 1973.

3. Less Job Security. There has been a very marked decrease in people’s sense of job security. A year ago, one in three Americans thought it was likely they’d lose their job in the next couple of years, double those who feared job loss 20 years ago.

On a more positive note,

4. More Ways to Work. Until recently, the predominant work pattern for most white-collar workers has been to have permanent, full time jobs in mega organizations. Though this provided more job security than we have today, it also meant most people had to fit a standardized 9-5, Monday through Friday work routine. There were few options. But that is changing. We now have more opportunities for different ways to work.

5. More Opportunities to Work for Small Organizations. The large scale downsizing of the 90’s decreased total large company employment. Meanwhile, small companies with less than 20 employees grew by 9% between ’91 and ’95. Slightly over 50% of all new jobs created between 1982 and 1996 were created by micro-businesses with four or fewer employees. That’s especially good news because, according to a recent Gallup poll, the smaller the workplace, the greater the level of employee satisfaction.

6. Even in Large Companies, Old Work Patterns are Changing. In companies of more than 1,000 employees, telecommuting grew by 60% between ’91 and ‘95 from 5.5 million to 8.7 million. The percentage of large companies offering job sharing doubled during that time frame so that by ’95 over a third of large companies offered job-sharing possibilities. There are also more part-time and contract jobs available than ever before. While these are not desirable options for many people, they do at least allow for more choices.

7. Abundant work. Though this may be changing with current world economic problems, we have been enjoying record low levels of unemployment in the last several years.

This low unemployment has existed in the face of massive layoffs because of a strong rate of job creation. Even large company employment seems to be on the rise. A recent Forbes study of their top 500 companies found that, for the first time in 15 years, large company employment is actually growing slightly. Though there are dramatic headlines daily about corporate downsizings, these are often offset by less publicized employment growth in other sectors of these same companies. So we may have turned the corner on a net loss of jobs in that area.

8. Greater Opportunities for Self-Employment. There are two major reasons behind this. First, downsizing and outsourcing have lead to a bonanza for those who want to be self-employed. The U.S. market for outsourcing, estimated at $100 billion in 1996 by the Outsourcing Institute, is projected to triple in the next two years to more than $300 billion.

Second, it’s possible for people to be self-employed without a lot of start-up capital. A computer, fax and modem in the basement are all many people need to get started. The SBA reports that there was a 57% increase between 1982 and 1996 in the number of new businesses in the U.S.

To summarize, the review is a mixed one. Most of us are working longer hours without earning more. And we have a greater sense of insecurity. But work is plentiful and we do enjoy a greater range of choices for how to work. And that is a real plus for individuals who need more flexibility in their lives.

Anna Navarro is the founder of Work Transitions, a nationwide career consulting firm that trains independent career strategists and consults with individual clients.

This column was originally published by the St. Louis Business Journal. The actual title of the column and date in which it appeared in the Business Journal may be slightly different from what appears on WorkTransitions.com.