Whether I'm reading the newspaper, or listening to the news on the radio, a topic that repeats itself almost daily is the impact of our changing economy on the average American family. Downsizing, re-engineering, and layoffs are terms we have all become too familiar with. The economic anxiety of voters has reached such a high level that politicians of all persuasions are attempting to capitalize on these concerns.

What is happening to the economy? Experts point out two key factors. First, we are rapidly shifting from an industrial economy to a service economy that requires what management expert Peter Drucker calls "knowledge workers." Drucker predicts that by the year 2000, at least one-third of the work force will fit into this category. A similar transition occurred after World War II when the economy shifted from agriculture to manufacturing. During that time, however, workers found it easier to make the transition because the required job skills were similar to their previous experiences. Today's economy often requires vastly different skills. The second factor impacting the economy is global trade, which has created an intensely competitive business environment. The impact of global trade is expected to become even greater as developing nations become more industrialized. Combined together, these factors are causing a dramatic shift in the economy. We should expect more families to be touched by joblessness over the next several years than what past generations have experienced.

If you find yourself fully employed, here are steps you can take to minimize the threat of a layoff and at the same time prepare your family finances in the event you do experience a period of unemployment.

Be a Diligent Employee
Proverbs 27:18 says "He who tends a fig tree eats its fruit, and he who is attentive to his master will be enriched." While being an excellent employee is certainly no guarantee that you won't experience a job loss, it is the most effective step you can take toward that end. Exceed the expectations of your boss; take the initiative and volunteer for special projects; above all, be a trustworthy employee.

Continuing Education
Most experts agree that education holds the key to survival in our economy. Proverbs 22:29 says, "You see a man skilled at his work? He will stand in the presence of kings; he will not stand in the presence of obscure men." Since 1979, the only men who have made gains in weekly earnings as a group are college graduates. I would encourage you to seek ways to expand your horizon through continuing education. I have seen many people given promotions because they took the initiative to continually improve their skills.

Get a Financial Plan in Place Now!
Be prepared! Many families are overspending and running up credit card debts even while fully employed, assuming that a future raise will take care of things. They are courting disaster in the event of a layoff. Now is the time to prepare, because it's not unusual for a job loss to occur with minimal notice. Many of the families I counsel and correspond with have credit card balances from $10,000-$20,000. This generates $2,000-$4,000 in interest expense that keeps going even though your income doesn't.

I would encourage you to develop a financial plan that follows the principles outlined in Sacred Scripture and Church Teaching. This plan should include giving God's portion first, debt reduction and a savings program. You should have at least six months living expenses set aside in savings accounts in the event of a job loss.

With the right attitude and the right tools, you can take control of your finances. We have developed a budgeting resource guide and financial planning organizer which we use in our counseling that is specifically geared to Catholic families. If you would like more information on these resources, contact Financial Foundations for the Family directly.

Managing a Job Loss
When a man faces unemployment, the physical, emotional and financial challenges for the family can't be overstated.

It is important during a difficult time like this to remember that even though the secular world often determines a man's self worth by what he does, the essence of our self worth is that we have been created in the image of God (Genesis 1:27). While work is a good thing and we are called to perform our best, it is important to recall the words of Pope John Paul II, "work is for man, and not man for work" (Catechism 2428; Laborem Exercens pg. 17). Maintain a positive outlook and apply yourself diligently to the task of finding a new job. Here are some practical suggestions from people who have been through a job loss. I hope you find them helpful.

* Take stock of your finances immediately and cut back on spending wherever possible. It's easy to maintain the same lifestyle for awhile with credit cards, but you'll be digging a hole that will be difficult to climb out of.

* When it comes to financial need, the common refrain I heard was, "Thank God for family!" The couples I spoke with were most comfortable presenting their needs to their immediate families first. If friends want to help, I recommend that it be an anonymous gift rather than a loan. The gift could be considered as part of the tithe.

* Networking continues to be the best way to find a job. Most jobs come through someone you know, so make sure your friends are aware of your situation.

* On one hand, don't allow pride to stop you from taking a position that doesn't meet your expectations, especially when your family's financial needs require it. On the other hand, don't jump at any offer too quickly just to get a job. This is a difficult balancing act that requires you to weigh your talents with the availability of jobs utilizing those talents.
 
* Take this opportunity to assess your career. Is it possible to apply your talents in a different way than you have in the past? I have had friends who transitioned very successfully from one career (retail sales) to another career (outside sales) after experiencing a job loss.

Finally, ask for heavenly help. Remember that St. Joseph had to deal with a middle of the night job change, so he can relate to all of our struggles. As the patron saint of workers, he will carry your petitions to your loving Father. God love you!