ABSTRACT

Contemporary trends in the economy force increasing numbers of people to deal with the crisis of job loss. Unemployment created by plant closures and downsizing produces multiple threats to workers' economic and psychological wellbeing. The displaced workers can anticipate a loss in seniority, reduced pay, and consequently, a lowering standard of living for themselves and their dependents. Typically, the impact of job loss goes beyond direct economic costs. Along with being separated from a familiar daily routine and supportive social contacts, displaced workers must deal with the implicit threats to their sense of self-worth and confidence in an orderly and manageable world (Borgen & Amundson, 1987; Brenner & Bartelli, 1983; Janoff-Bulman & Frieze, 1983; Kaufman, 1982; Kelvin, 1980; Lerner,, 1980; Vinokur, Caplan, & Williams, 1988; see Kelvin & Jarrett, 1985, and Warr, 1987, for reviews). These threats create a powerful incentive for the displaced worker to find the best possible re-employment. However, they may also lead to a crippling demoralization and avoidant defenses. The possibility for destructive rather than effective coping responses poses a serious problem for society as well as the victimized worker.