When the economy hurts workers

Economic downturns can have far-reaching consequences. Genis Fernandes discusses the potential impacts on workers’ wellbeing and how health and safety professionals can play a supportive role.

The economic landscape of the past weeks could be described as organised chaos. Global markets have been rupturing confidence, certainty and stability that have existed for decades. Recently-imposed trade tariffs have increased economic volatility and have spread financial turmoil worldwide. Amid this whirlpool of events, I’m compelled to draw attention to a key player at the heart of every economy, one that goes seemingly unnoticed – the worker.

Economic uncertainty has raised questions over existing global trading relationships.^{[Ref 1]} Discussions around in-house manufacturing, near-shoring and the cost of doing business overseas all point to the impact on global supply chain operations.

Inevitably, changes to high-level policies will cascade down,^{[Ref 2]}with workers destined to feel the blow through job insecurity, precariousness or even unemployment.

Genis Fernandes

Job role

Research Programme Lead (General)

Company

IOSH

So, what aspects need to be considered?

Job insecurity. In the past, global recessions have disproportionately affected especially vulnerable groups, including ethnic minorities, women, less-educated and young workers.^{[Ref 3]} As confidence in stable employment is eroded, vulnerable workers are exposed to the perils of insecure work, including volatile and low pay, non-permanent work and under-employment.^{[Ref 4]}
Worker sustainability. Periods of peak economic uncertainty have negatively affected job prospects, especially for workers with a low income and education. We saw this during the 2008 global financial crisis and the onset of the Covid pandemic in 2019.^{[Ref 3]}Although the crises might be short-lived, ‘economic scarring’^{[Ref 5]}can be long-lasting. For instance, unemployment can impede working lives even up to five years after re-entering the workforce.^{[Ref 6]}
Poor wellbeing. Economic uncertainty has been linked to an increased prevalence of mental health disorders.^{[Ref 7]} This uncertainty potentially leads to job loss and insecurity, contributing to financial stress and poor wellbeing. Consequently, workers experience both economic hardship and emotional strain.

What is to be done?

Governments, employers and workers drastically affect labour market trajectories.^{[Ref 8]} A conscious effort from all key players, including occupational safety and health professionals, can ensure support to workers and organisations. They must actively consider and advocate for worker protections.

As we strive for economic stability, we might need to pause and reflect. Can we truly withstand waves of uncertainty if workers continue to bear the scars of systematic neglect?