Career Counseling in a Weakened Economy

Deborah F. Corkindale

Capella University

The mental health counselor will face issues surrounding career regardless of the population with whom the counselor works. Job and work is very much a part of the adult psyche and flow of life. Children may be affected by their parents’ working situation. College students are on the big quest to decide what they "want to be when they grow up." Even retired adults often define themselves by what they had done for a career, and some may even want to continue working. The point is that at nearly every point in our lives, work is very much a part of who we are and how we live. However, today’s economy and political atmosphere have restricted some of the options and possibilities that were once available to us regarding work. Lay offs, salary decreases, job reassignments, and consolidations have all taken their toll on our perceptions of the workplace and the options we have there. Whether working as a mental health counselor or exclusively as a career counselor, understanding the climate of working in America and the issues facing workers is important for the therapist. This study will examine some of those issues.

Career counselors working today are confronted with many situations and issues that extend well beyond the more defined scope of helping clients to find the right career or the best environment in which to work. As the world economy reacts to political and economic crises around the globe, more and more workers are being terminated or their jobs are undergoing major redefinitions. There is much for career counseling professionals to consider and to know in order to effectively assist today’s workers.

Both career counselors and mental health counselors need to be familiar with the context of the current workplace. There are certain unavoidable stresses and situations that have far reaching effects. On whichever side of the counseling fence the practitioner falls, both career issues and emotional issues associated with the working environment in which we all labor today must be considered.

This study will explore three major areas. (1) The situations surrounding today’s workers will be explored. That is, this study will look at the needs of people at different career transition points. (2) The stresses of the changing workplace and world environment which people work will be examined. (3) Finally, possible counseling interventions for workers in transition will be suggested, again for those out of work, for those entering or re-entering the workforce, and for those unhappy with the new business order.

Today’s Workers and Their Needs

There will always be a need to provide services to clients that are considering a career change. Young adults in college will seek career guidance as they select their educational major. Some people are re-entering the workforce after raising a family and need assistance in reviving their career or embarking on a new one. Other clients will need help in determining the correct environment in which to work because of physical limitations, or educational background, or family commitments. However, after the financial bubble of the 1990’s burst, there are additional issues and work situations with which career counselors will be faced. Many of those topics will be a result of the shaky financial times in which we live. Terminations are a big part of our life today. Dissatisfaction with jobs and the workplace is also.

All of these people, both the job seekers and the workers in redefined jobs, are apprehensive as their personal world undergoes change, are worried about their own financial future, and may also be experiencing some degree of unease at the world order that is precipitating these personal changes. These factors leave the career counselor in a position of needing to work not only on the career issues of clients, but also on the possible mental health issues of clients.

The problems that certain populations face are not specifically addressed in this analysis. Those populations include disabled workers, gay, lesbian, and bisexual workers, transgender and transsexual workers, multi-cultural workers, and older workers. The research done did not highlight any specifics for these populations related to the current financial crisis and the current workplace environment. The conclusion might be that the prejudicial attitudes held toward these groups would only be exacerbated by the current job climate. Whatever issues other workers face at certain points in their careers, the attitudinal problems faced by these populations can only be compounded by that list of problems.

College students have always been prime candidates for career counseling because it is at this time in their lives and at this point in their education that they will choose their first career. But, for those graduating now, the job market has certainly tightened up. One report from the National Association of Colleges and Employers predicts a 3.6% decline in opportunities for the class of 2003 (NACE, 2003). That is not a huge decrease, but any at all makes it more difficult. Going along with that also is decreased starting salaries for college graduates, which varies from field to field (NACE, 2003). The formerly high-riding tech sector has decreased the most drastically.

The people whose jobs are changing are feeling uncertain, perhaps over-worked, and unhappy about their new job requirements. As lay-offs occur, the remaining workers must take on the work their terminated coworkers were performing. There is always the feeling at those companies that have already laid off that anyone could be next.

Besides lay offs, companies are looking for other ways to cut costs. Another way to accomplish that is to pass on more of the costs of health care to workers, so employees are seeing their benefits diminish and their costs go up (Zellner, 2003). According to one survey, only 4% of companies had mandatory pay cuts in 2002, and only 5% were contemplating them in 2003 (WorldatWork, 2003), but even the threat of that happening adds to the already shaky feeling of most workers.

With the occurrence of lay offs common in many industries, workers are feeling the pinch. They are working more hours, partly under the perception that working longer and harder will help them to keep their job and partly because the company must make up for terminated employees. This adds stress to their lives. They are trying to save money so that in the event that they are laid off, they will have savings on which to rely.

As difficult as it is for working people to adjust and produce in the workplace environment of our current time, adding a lay off to that already shaky feeling presents a number of problems that a counselor must address. Challenger, Gray, & Christmas, a New York City outplacement firm, indicated a figure of 572,000 pink slips given out in 2001, which was nearly three times for the same period the prior year (Schwartz, 2001). According the WorldatWork 2002 Layoff Trends survey, more than half of responding organization experienced layoffs in that year, and about one-third anticipate a layoff in the first six months of 2003 (WorldatWork, 2002).

Out of work individuals are seeking new jobs, most in the same career area of their prior jobs (Lewison, 2002). However, some will want to explore new careers for which they might be suited, and some of that number will actually career switch. Getting past the feelings of losing a job must be dealt with alongside offering advice on what to do next.

People may be returning to work for any one of a number of different reasons and with any one of a number of different backgrounds and experience levels. A parent that had chosen to stay home with small children, the stereotypical re-entering worker, may be coming with a certain degree of previous work experience, but with little exposure to the work climate of today, except as second-hand information from spouse and friends. This re-entering parent may also be seeking work for a couple of different reasons. Perhaps the spouse has been laid off or perhaps there is fear for the future or perhaps it is just time to return to work because of the children’s ages.

The Work Climate

An accurate and complete analysis of the various reasons for the seeming lack of confidence in the economy is certainly far beyond the scope of this project. But, for the purposes of this report, it is important to list some of the factors in the workplace environment of which the career counselor should be aware.

Unemployment rates reached records lows in 2000 and have been climbing gradually since then. Although unemployment rates are higher than they were in 2000, they are still not as high as they were ten years ago (Bureau of Labor Statistics, 2003). However, anxiety surrounding the workplace seems to be very running high. What is causing this anxiety? The Bureau of Labor Statistics maintains and provides statistics on unemployment rates and situations. Although unemployment rates are up only slightly, the big issue seems to be a lack of options available for those that are not working. In other words, getting laid off potentially means longer out of work.

The charts presented here from the U.S. Department of Labor, Bureau of Labor Statistics (U.S. Bureau of Labor Statistics, 2003) graphically show three pieces of data that are important in understanding why there is great anxiety although unemployment is not extraordinarily high. They also confirm that conditions to not appear to be heading towards improvement soon. First are the unemployment figures. Note that they are lower than they were 10 years ago. Next, please see the jump in mass lay-offs over the past couple of years. These news events certainly hit the media and further enhance the shaky feeling of workers.

Finally, note the job openings. Not only are people getting laid off, but not all are finding jobs quickly. The important part here is that the perception of the workers is that if they are laid off, they will have a difficult time finding a job. Things are changing very rapidly also.

One IT professional, a data base administrator, was laid off last year from a large insurance company. She waited to get a job because she received an extremely generous severance package (over 18 months). Now that she wants to return to work, those jobs she saw last year are not there, or the salaries have gone down.

The government is laying off employees. The private sector is doing the same. Many people work daily in an environment of "waiting for the next shoe to drop" – in other words, waiting for the next bad thing to happen. This situation exists alongside a deflated stock market. Most people’s personal wealth has gone down dramatically, beginning in early 2001. The stock markets have gone up and down over the years, and we are not really in a shockingly different pattern that at other times in our financial history. But, as a society we are in a very different emotional place, because so many people are not only aware of the stock market but are also investing in it individually, outside of 401k plans. We have a more personal stake in the market. So as each person sees their personal wealth reduced dramatically, even though recovery is beginning to occur, there is still an overriding feeling of loss and uncertainty.

As mentioned earlier in the information on unemployment, lay offs, and the threat of lay offs, affects feelings about our personal financial security. Many people are saving in anticipation of a lay off. Data collected by WorldatWork (WorldatWork, 2003) shows that it is a reality and the fear is founded in fact.

Severance, or a salary continuance to ease the transition to a new job, for terminated employees is not a guarantee, but it has been a fairly common practice for office workers in corporations and for union members. One report shows a fairly significant increase of occurrence in the 1990’s with mild decreases since the midpoint of that decade (Bishow & Parsons, 2003). Another article reports significant decreases in both the number and amount of severance packages offered since 2001 (American City Business Journals, 2002). A quote in that article from John Challenger, chief executive officer of Challenger, Gray & Christmas says a lot about the attitudes in corporations today:

WorldatWork, 2003

During the 1990’s, mergers and acquisitions became a way of life for corporate America, and for the world. Each person has either been part of or knows someone that took part in corporate mergers and acquisitions. It is very much a part of our current corporate landscape. Mergers imply that processes will be merged and that positions that are perceived to be superfluous will be eliminated. It certainly adds to the sense of not being on solid ground for the workers involved. One website lists 6 acquisitions for the week ending Friday, June 13, 2003, and 7 for the week ending Friday, June 6, 2003. Including in the list are some well-known names: Peoplesoft, Abbott Labs, Palm Pilot, General Dynamics, and United Technologies, all acquiring other companies (Online Investor, n.d.). Mergers and acquisitions lead to downsizing and consolidation of services – both words that signify a reduction in force.

Financial scandals have rocked the news -- Enron, WorldCom, ImClone, Arthur Andersen, Global Crossing – the lists continues to grow each month. Corporate giants engaged in illegal and unethical accounting practices, simply as a means to show a better bottom line (Kumasaka, 2002). Besides causing financial ruin for their investors, additionally this left the public with a generalized and basic distrust of corporate America, senior level executives, and the people entrusted with guiding their working and financial lives.

One article describes the bubble economy of the 1990’s, and the idea behind that is important (Kumasaka, 2002). Essentially, the attitude of that decade was greed and expansion, but it was nothing more than a bubble, which had to burst. As it burst, so did many people’s hopes of early retirement amidst wealth. We are returning to reality regarding financial gain.

The entire idea of high expectations, perhaps better put as inflated expectations, must be considered as an important ingredient in the uncertainty we feel. The high riding 1980’s and 1990’s occurred just as the baby boomers were reaching their career strides. Expectations ran high -- houses being built increased in size (Heavens, 2002), our homes were decorated in mauves and pastels (Eiseman, 2002), hemlines went up (Valenti, 2003), and to top off the 80’s and usher in the 90’s, the Ford Explorer was introduced (Ford Truck Enthusiasts, 2002). Our financial futures were looking rosy. Although the financial downturn began in 2000, the events of 9/11 rather turbo-charged the downturn. We are coming to understand that the inflated expectations in earlier years had far-reaching effects, and are dealing with the results of that now.

Career Counseling Interventions for Workers in Transition

With all this information in mind, what does the client of today bring to the career counselor? This client brings in uncertainty. He or she brings in lowered expectations. There may be some sense of loss of hope or lessened hope. Anyone can benefit from knowing his or herself better and being more aware of wants and needs, likes and dislikes. The career counselor can help.

These graduates are acutely aware of their limited possibilities and their expectations reflect it. One poll taken recently reports that 53% of the responding 2003 graduates do not expect any job offers. This figure can be compared to 23% in 2001 (Hobson, 2003).

One way to avoid working in an undesirable job is to stay in school. Many seniors are continuing on with graduate school right then, rather than working for a while and letting their employer pick up the tab. Applications to medical school increased for the first time in seven years, and the number of those taking the Graduate Record Exams (GRE’s) is at the highest level ever (Hobson, 2003). Although the costs of graduate school are high, the expenditure of both money and time might well be worth it for graduating seniors this year. The job market might ease in the intervening time that they are in graduate school, and that degree itself should offer them different and better and additional opportunities.

The career counselor can encourage these graduating seniors considering graduate school to go out to the Department of Labor’s website and explore the Occupational Outlook Handbook (U.S. Bureau of Labor Statistics, n.d.). They also might be well advised to take an interest inventory, a values inventory, and also an aptitude test. Getting in your undergraduate degree in one thing does not disallow you from changing direction slightly and head towards a different direction. Now is the time to explore that.

This is also an excellent time for graduating seniors to get some less formal experience. They can volunteer locally, with the idea that experience is experience. An IT graduate can volunteer to develop or enhance a local charity’s web page, certainly usable on a resume. A business major can get involved in producing a community theater presentation. This proves organization ability and also gives the job seeker more contacts. A teacher who cannot land a teaching job for the fall, or an engineer or IT graduate, might volunteer for AmeriCorps and gain experience there (Americorps, n.d.). That would provide an opportunity to give back, a chance to earn money to repay school debt, and also give a foot up in experience for the following year

Most workers in transition will choose to remain in their current field and will continue to pursue their career (Lewison, 2002), but many might use the time out of work to consider and research additional careers. The career consultant can help the client to decide which way to go in a job search. The client may want to pursue the one he or she already knows and in which there is experience, or the person might consider that dream job that is either a little bit of out reach because of skills or experience, or a little bit off-center with skills.

One big benefit being offered to many terminated employees is an outplacement service. These vary in depth and time, but the basics covered in them can include:

• a review of your past, especially skills,
• a review of your likes and dislikes,
• attitude adjustment (these seminars are very upbeat),
• interviewing skills and techniques,
• resume writing,
• and other tricks and tips.

These generally are for a defined time period, but the timing on them may not be right for a particular person. What is offered in these outplacement services is very valuable, and the career counselor can borrow some of the information and techniques and provide it either verbally or in a packet to clients in job transition situations.

The career counselor might consider organizing therapy type groups for terminated workers. Many out-of-work people have described the feeling of camaraderie they felt in these outplacement groups, and a private counseling setting might work well to continue what was begun in the healing and going-forward process. These groups could provide a number of benefits and interventions. Participants will need to work through the feelings of loss and discouragement. They will need reassurance that the feelings they are having are normal. They will need to vent with other people in the same spot. They will also need help in being more upbeat and enthusiastic about looking for work.

Different people will handle a job loss in very different ways. But there are some issues that all will experience to varying degrees (Rich, 2003). Shock is a common reaction, regardless of the circumstances. Even a person laid off from a job they did not like and receiving a severance package will react to the termination. There is usually a feeling of confusion and disorientation. A pattern has been removed. There may be feelings of humiliation and lack of self-esteem. The individual will then begin to deal with the situation, ensure finances are in order, etc. Different people will react very differently to this situation, but all will affected to some degree. The counselor will probably encounter those that are having more difficulty adapting and moving forward, and the idea of grieving is an important concept for working with some clients.

It is always a good idea for everyone to find out as much as they can about themselves and get as many clues as possible. Therefore, these terminated workers might be well served by taking an interest inventory and a values inventory. Depending on where they are in their career, they may or may not find it useful to take an aptitude test. Some people would not make use of the results of that based on salary requirements, desire to learn something new, etc. But, a values inventory might help them find out that they might potentially be happier working with other people, and may, therefore, seek a position on a team or working with clients. An interest inventory might provide information along the same lines. For example, an IT professional can use his or her skills in a number of different capacities, and an interest inventory might give viable suggestions.

The people whose jobs are changing are feeling uncertain, perhaps over-worked, and unhappy about their new job requirements. As lay-offs occur, the remaining workers must take on the work their terminated coworkers were performing. One way to cut costs is to pass on the costs of health care to workers, so employees are seeing their benefits diminish and their costs go up (Zellner, 2003). According to one survey, only 4% of companies had mandatory pay cuts in 2002, and only 5% were contemplating them in 2003 (WorldatWork, 2003), but even the threat of that happening adds to the already shaky feeling of most workers. With the threat of lay offs common in many industries, workers are feeling the pinch. They are working more hours, under the perception that working longer and harder will help them to keep their job. This adds stress to their lives. They are trying to save money so that in the event that they are laid off, they will have savings on which to rely.

This group of people comes to career counselor with a myriad of different experience levels and for a myriad of reasons. Many of these returning workers will be parents that had stayed home with small children but are not ready to go to work. Many will come with prior experiences in a particular career, but some will also come with a desire to make a new start. Chances are, the job market is quite different than it was when they left, because of all the changes in the world in the past few years. The first thing these clients need is a re-acclimation to the working world. The counselor can point these clients to the Outlook Handbook, to Monster’s job search website (Monster, 2003), or HotJobs (Hot Jobs, 2003), and any other local job hunting sites. Those are excellent places to begin. This client can make use of a testing battery, including interests, values, and aptitude. The counselor can translate the results for the client and help him or her to perhaps redefine job goals and areas. This can be a very interactive counseling.

Like the college senior, this population might gain an advantage in their job search by volunteering and by broadening their experience.

Summary

The events of 9/11 were not mentioned extensively in this analysis, but the effects of what happened that day still remain as a backdrop in most adults’ lives. Children have certainly internalized some experiences, but it still remains to be seen what reactions will manifest for them as they grow older. We are still confronted with reminders of that day at every turn in our lives, and we are all still working through the emotions associated with it.

This is mentioned as the first thought in this summary because it really is at the heart of the emotional issues with which workers are dealing. Although the economy started slipping prior to September 11, 2001, we have seen massive lay offs subsequent to that day, and there is a sense that, at least in our minds, the two go hand in hand, i.e., the terrorist attack and a weakened economy. There is a double whammy effect, so to speak – not only is our financial security is on shaky ground, but also our physical security is unsure. As helpers we must give at least a cursory look to the possible post traumatic stress associated with 9/11 in any person that enters our office. We all appear to be carrying at least a little bit of that burden around with us. Certainly, it was exacerbated by the U.S. attack on Iraq and we are having a difficult time shaking that burden.

Having said that, it is apparent that the counselor must consider this unease that each of us feels in the career counseling process as well as in mental health counseling. The point is, career counseling today carries much of the same look and feel of mental health therapy, with the workplace as the problem, instead of (or perhaps in addition to) substance abuse, unhappy marriages, problems with children, etc.

More than ever, counseling, both career and mental health, must be holistic, looking at working conditions as well as the individual’s body, mind, and spirit.

Exhibit A

This is from the Woman’s Work Website, and was written by Kirsten Ross (Ross, 2002). There is much good advice here for workers at all transition points in their career, so it is reproduced in its entirety. These are suggestions on what to do while looking for work.

• Continue memberships in one or more professional organizations
• Stay up on any reading that you receive through these organizations. If you only have time to skim the articles or headlines don’t worry! At least you will have a general sense of what the hot topics are and will get a feel for general new trends.
• If you can, attend some of the lunches or other events sponsored by the professional organizations to maintain a network. You can also add some of these activities to a resume to fill in holes.
• If you have time, do some freelance work. There are many websites out there now that make it very easy to find projects in your field – and most can be done at home. Check our listing of sites at http://www.womans-work.com/freelance_jobs.htm
• Attend some workshops or seminars
• Keep any licensure or certifications current – it is usually easier to maintain them than it is re-certify.
• Do some volunteer work
• Surf the net. Find some sites geared toward your profession. Join the site and/or sign up for any newsletters. Take advantage of the content and peruse any discussion boards.
• Stay up on current technology
• Have lunch with former coworkers or colleagues on occasion or just drop them a quick e-mail to say hi. It will be helpful to have established contacts when you decide to return.
• Start a website. Provide expert advice from your field. Write good content for your pages and start a newsletter.
• Write articles for e-zines. There are thousands to choose from! Send an email with your article idea. Most e-zine publishers are very happy to find good content.
• Keep your resume up to date. If you attend a seminar or do some volunteer work add it!

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