Impact Of Economic Meltdown On The Staff
(Case Study Of Staff Of Enugu State College Of Education (Technical)
The repercussions of an economic downturn on employees are profound and extend across various dimensions. The economic downturn significantly influences job security, leading to heightened anxiety and stress among staff members. Uncertain market conditions often force companies to implement cost-cutting measures, such as layoffs, salary freezes, or reduced working hours, directly impacting the financial well-being of employees. The financial strain, coupled with the increased competition for a limited number of jobs, exacerbates the challenges faced by the workforce. Moreover, the psychological toll of navigating through an economically turbulent period can affect employee morale and productivity. Organizations must adopt strategic measures, such as employee support programs or upskilling initiatives, to mitigate the adverse effects of an economic downturn on their staff, fostering resilience and adaptability within the workforce.
This study is aimed at investigating the impact of Economic Meltdown on the staff of Enugu State College of Education (Technical), Enugu. The cross sectional survey research design was used for the study. A sample of 180 staff of the College of Education (Technical) Enugu was used for the study which was also the population for the study. Structured questionnaire which was validated by three lecturers in the School of Science Education all in ESCET was the instrument used for data collection. Three research questions were raised for the study. Percentages were used to analyze the data. The findings shows that (1) The causes of Economic Meltdown are; continuous dependency on the oil and gas sector, high dependency rate on foreign goods by Nigerians, low level of technical knowledge among Nigerians in the operation of mechanized machines or tools, rapid population growth all over the country and total negligence of other sectors like agriculture. (2) The effects of Economic Meltdown are non payment of workers as at when due, workers find it difficult to meet up their personal needs and inability of workers meeting up the demands of their family. (3) The possible strategies are a diversified economy should be practiced by the government, the agricultural sector should be made more attractive by the government, reduction in the rate of birth and encouragement of goods produced within the country by Nigerians. Recommendations and suggestions were based on the findings.
Title page
Approval page
Certification
Dedication
Acknowledgment
Table of Contents
List of Tables
Abstract
CHAPTER ONE:
INTRODUCTION
Background of the Study
Statement of the Problem
Purpose of the Study
Significance of the Study
Scope of the Study
Research Questions
Definition of Terms
CHAPTER TWO:
REVIEW OF RELATED LITERATURE
The Concept of Economic Meltdown
The Causes of Economic Meltdown
The Effect of Economic Meltdown
The Possible Strategies for Improvement
Summary of the Literature Review
CHAPTER THREE:
RESEARCH METHODS
Design of the Study
Area of the Study
Population of the Study
Sample and Sampling Technique
Instrument for Data Collection
Validation of the Instrument
Reliability of the Instrument
Method of Data Collection
Method of Data Analysis
CHAPTER FOUR:
DATA ANALYSIS AND RESULTS
Research Question 1
Research Question 2
Research Question 3
Finding of the Study
CHAPTER FIVE:
DISCUSSION OF FINDINGS, CONCLUSION AND RECOMMENDATION
Discussion of the Findings
Implication of the Findings
Summary of the Study
Conclusion
Recommendations
Limitations of the Study
Suggestions for further Study
References
Appendix 1:
Questionnaire
INTRODUCTION
Background of the Study
The issue of Economic Meltdown affects not only the staff of Enugu State College of Education (Technical), it affects also the citizens of this beloved and great country Nigeria and other countries all over the world like United States of America (USA), United Kingdom (UK), China etc. The definition of the term “Economic Meltdown” according to various views from several sources will be considered. First of all, another word or phrase which can be used interchangeably with economic meltdown is “Economic Crisis”. Now, the definitions:
Oxford Advanced Learner’s Dictionary (6th edition) defined the word economic as a term “connected with the trade, industry and development of the wealth of a country, an area or a society”. It also defined meltdown as “a situation whereby something fails or becomes weaker in a sudden or dramatic way”. Therefore, economic meltdown is “a situation whereby there is a decline or decrease in the economic activities of a country”. It further means that the economic activities of a country have been decreased in a sudden way.
Pius (2007) sees economic meltdown “as a situation whereby the rate of the economic activity of a country decreases”. This decrease according to him implies that the rate in which the economy of a nation used to be is no longer like that due to some factors. Such factors as listed by the authorities includes: decrease in employment opportunities, inflation etc.
Macrocom (2009) said that like many other issues in economics, “economic meltdown” is an expression for which any interpretation would do. So therefore, he said that meltdown implies ‘great heat and high temperature’ but according to his way of thinking, he defined economic meltdown as “the lack of economic activity which brings about coldness (i.e. decrease) and not heat (increase) in the air (i.e. in the nation’s economy).
Marshal (2008) sees economic meltdown in its simplest term as “economic go-slow”. Just like traffic jam which halts the movement of people with motor vehicles, that is how economic meltdown halts the economic activity of the country.
There are numbers of argument which caused the economy to crash as badly as it did in years 2008 and 2009 hence, the research work on this topic and also what made the economy to fall into recession starting from December 2007.
According to Ajayi (2009), one important solution to the present economic meltdown is for a developing country like Nigeria to diversity their economy, wage a serious battle against all forms of corruption and promote all those values that supports development. Leaders should rule with the fear of God and the followers must not only believe in themselves but they should be positively committed to the task of nation building.
Atughonu (2009) said that this disease called “economic meltdown” which has brought so many expertise almost to a mockery should be seen as a definite issue. People now should know that their wisdom can equally fail them in the long run. According to him, the solution to this issue is that people should have love for one another and not to believe in so much acquiring of wealth or in their own wisdom. They should believe in supreme wisdom, have positive thought, shun away corruption, greediness and most importantly turn to God.
People do wonder and ask questions about when this economic meltdown will last. According to Gerd Leonard (2009) he believes that there is still a long way to go before a recovery will begin. Acneguy (2010) said that it will take a long time for the economy to experience any form of recovery because the economic meltdown issue is the longest so far in the past decade. He also said that even when the recovery will begin, business owners will need a new set of tactics to do well during the recovery period.
Statement of the Problem
The task of achieving economic recovery and to achieve sustainable growth among the staff of Enugu State College of Education (Technical) is rather daunting. The reason is because Nigeria as a country appears to be in a very low economic state which is unfavourable to the growth of workers (like ESCET staff) economically.
Infact, this have indeed caused the low standard of living among ESCET staff and workers all over the country. Other factors like the non-payment of staff as at when due, low income received by staff etc have indeed made this economic meltdown situation to be experienced more by workers all over the country and due to the fact that no solution is forthcoming from the nation’s economic desk, the economic lives of the workers are being affected including the staff of ESCET.
Purpose of the Study
The purpose of this study is to determine the impact of economic meltdown on the staff of Enugu State College of Education, Technical (ESCET). Specifically, the study intends to:
i. Determine the causes of economic meltdown.
ii. Determine the effects of the economic meltdown situation on the staff of ESCET.
iii. Determine the possible strategies to achieving economic recovery and sustained improvement in the way of life of the staff of Enugu State College of Education (Technical), Enugu.
Significance of the Study
This study is knowledgeably enriched and endowed with information which would be of immense importance in the sense that the result of this study would bring about a change of heart on the general outlook of the nation’s economy.
It would be of immense help to present and prospective National economic planners. It would also help them (i.e. economic analysts) on how to bring about a change (i.e. providing possible strategies) in the economic system of Nigeria.
Government (both state and federal levels) would find the result of this study helpful in the sense that most factors which brought about a decrease in the economic activities of the nation would be x-rayed and this would make the government to know the area to start proffering solutions to the problems. It would also bring about an increase in the standard of living of the people and then ensure equitable distribution and consumption of goods and services by the Nigerian citizens.
The result of this study will be beneficial to further researches in that it will form a base for further research work.
Scope of the Study
The study was strictly carried out to determine the impact of economic meltdown on the staff of Enugu State College of Education (Technical), Enugu.
The researchers focused on both the academic and non-academic staff of this great institution in order for them to help in identifying and explaining the different ways in which the economic meltdown have an effect in their lives. Also, the causes of economic meltdown, the effect and the strategies to achieve economic recovery are also within the scope of this study.
Research Questions
The following questions were raised for the study:
1. What are the causes of economic meltdown in the country’s economy?
2. What are the effects of economic meltdown on the lives of the staff of Enugu State College of Education, Technical, Enugu?
3. What are the possible strategies to the economic meltdown situation in order to improve the economic status, growth and development of the staff ESCET and also the Nation’s economy?
Definition of Terms
a. Economic Meltdown: This is a situation whereby there is a decrease or decline in the economic activity of a country.
b. Economic Planning: This is the allocation of resources by the government in such a way that growth increases rapidly which will lead to an overall improvement in the standard of living of the people in a given country.
c. Inflation: This refers to a state of economic affair in which too much money constantly chases too few currently produced goods and services in a country.
d. Unemployment: This means the existence of a large number of physically prepared men and women (i.e. working population) in a country seeking for jobs but are unable to find any.
Impact Of Economic Meltdown On The Staff
An economic meltdown, often characterized by a severe and prolonged economic recession or crisis, can have a profound impact on employees and staff across various sectors and industries. The effects can vary depending on the severity of the meltdown, the resilience of the affected economy, and government interventions. Here are some common ways in which economic meltdowns can impact staff:
Job Losses: One of the most immediate and visible impacts of an economic meltdown is a surge in unemployment. Businesses may cut costs by laying off employees or freezing hiring, which can result in job losses for staff. This can lead to financial instability and stress for those affected.
Reduced Income: Even for those who do not lose their jobs, economic meltdowns often lead to reduced incomes. Companies may implement pay cuts, reduce bonuses, or freeze salary increases to cope with financial difficulties. This can impact the overall well-being and financial security of staff.
Increased Workload: In some cases, staff may be asked to take on additional responsibilities or work longer hours due to reduced workforce. This can lead to burnout and decreased job satisfaction.
Benefits Reduction: Employers may cut or reduce employee benefits such as health insurance, retirement contributions, or tuition reimbursement programs to save money during economic downturns. This can negatively affect the financial security and well-being of staff.
Uncertainty and Anxiety: Economic meltdowns often create a sense of uncertainty about the future, leading to anxiety and stress among employees. Fear of job loss, financial instability, and economic insecurity can take a toll on mental health.
Delayed Career Advancement: Economic crises can disrupt career advancement opportunities. Staff may find it difficult to secure promotions or raises during such times, which can affect their long-term career prospects and financial goals.
Retirement Planning: A prolonged economic meltdown can impact retirement savings and plans. Employees may see their retirement accounts decline in value or may be forced to delay retirement due to financial constraints.
Reduced Investment in Training and Development: Companies may cut back on training and development programs during economic downturns, which can hinder the professional growth and skills development of staff.
Employee Morale and Engagement: Low morale and reduced engagement can become widespread during economic meltdowns. Staff may become disheartened due to job insecurity and financial challenges, which can affect productivity and workplace dynamics.
Impact on Families: The effects of economic meltdowns extend beyond the workplace and can impact employees’ families. Financial stress can strain relationships and affect the well-being of family members.
It’s important to note that the impact of an economic meltdown can vary widely depending on individual circumstances, job roles, and industries. Additionally, government interventions, such as stimulus packages and unemployment benefits, can mitigate some of the negative effects.
Employers can play a crucial role in supporting their staff during economic crises by offering financial counseling, mental health resources, flexible work arrangements, and clear communication about the company’s plans and strategies to weather the storm. Employees, on the other hand, may need to adapt their financial habits and seek assistance where needed to navigate the challenges posed by economic meltdowns.