Is the Constant Threat of Downsizing Preventing the U.S. Job Market from Getting Back to Normal?

Downsizing is a word that nobody in the workforce wants to hear or talk about. It has contributed to this country's all time high unemployment rate. Downsizing is just one of the many factors that are preventing the American job market from getting back to normal.

Downsizing is when a company reduces its number of employees. Unlike layoffs workers who have been dismissed as a result of downsizing cannot be rehired. Downsizing is being use more by companies than it has ever been in the past. Many companies view downsizing as something positive. They believe that it creates immediate increases in both profits and productivity. This is a selfish way of thinking for corporate America. Corporate America no longer is concerned about the welfare of American workers. From a worker's perspective I believe that there is nothing good about downsizing regardless of how companies try to butter it up. Any measures taken by stakeholders that are believed to be more efficient are meaningless especially if they are at the expense of the workers. Although it is not an uncommon practice for companies to downsize yet it actually hurts them in the long run. This great recession that the U.S. is currently in has permanently damaged the American workforce. There is constant talk about the job market recovering. I really don't see how this is possible. Many jobs have been jobs have been eliminated with no chance of returning. Companies have learned to function with a smaller workforce. Jobs that normally required three people now have one person doing them performing multiple job tasks. Unfortunately now fewer workers are required to do more.

It will be very difficult for the American job market to return to normal. Many companies have reached the point of desperation where they foolishly believe that there are no other alternatives to downsizing. There is a better remedy for the situation. I believe that in order for the job market to get somewhat back to normal it is imperative that new jobs are created.

Companies must discontinue outsourcing American jobs. Instead we should focus on in sourcing jobs. If we offer international companies tax breaks and other incentives then they will be eager to do business here in America. This will not just help stimulate the economy but it will also make it possible to restore the job market by putting Americans back to work.

Ydstie, John, Extreme downsizing may hurt companies later, NPR