Rewind To The 90s: Work Now vs. Then

Welcome to The Shift, a weekly newsletter where I provide thought-provoking ideas to help you think differently about your career and money.

Stuck In A Different Decade

A lot of people feel stuck.

Companies are doing less hiring, some industries aren’t hiring at all, promotions are happening a lot less frequently¹ , and the appetite for raises is waning.

It’s tough out there.

It’s even harder if you’re someone with a bit of tenure under your belt.

One recent survey found that the higher up you are in the org (management level or higher), the more money you make, and the bigger the company you work for, the less secure you feel in your job² .

No wonder employee engagement fell off a cliff recently - to an 11-year low.

In a weird way, the stuck sentiment reminds me of the years following the financial crisis. If you had a job, there was no way you were gonna look for a new one because no one was hiring. You were also too busy praying you didn’t lose the job you had.

People have a feeling of ‘nowhere to tun’ which is reminiscent of 2008/2009. I remember the feeling well, I lived/worked through the financial crisis.

But there a more relatable moment in time for this stuck feeling:

The mid-90s.

And that could be good, but awkward.

90s Nostalgia. Or Not.

The music and neon clothing have nothing to do with this.

As nostalgic as the 90s can be, I don’t think workers felt that way about jobs.

Looking back, hiring slowed substantially in the mid-90s while the market recalibrated for a new era of skills, consumption (services over goods) and technology.

Like now, there were so-called labor shortages as there weren’t enough available workers for the fields that were growing.

Layoffs for highly skilled, highly paid, senior workers (over the age of 35) in white-collar jobs increased.

Job insecurity was elevated. Ask your boomer parents or friends about it – they were mid-career at the time.

A recalibration was underway.

Recalibrations Are Awkward

Temporary work became a way for workers and employers to bridge the gap as the transition to a more tech driven and automated workplace emerged.

Today you see that gap being filled by independent workers who are self-employed and gig workers, not the corporate temporary work of the 90s (which was much more skilled than the hiring of administrative assistants in the 80s, fyi).

Temporary work has fallen sharply since 2022³. To me that says, workers are bridging the gap in a way that benefits them, and perhaps other individuals. Corporations, on the other hand, seem to be lagging on bridging the gap.

C-suite executives have focused on retaining the talent they do have (some call it hoarding workers) because of worker shortages. Their other focus has been on investing in the technology of the future, i.e. AI.

They are aware of the need to reskill employees, but as the technology is evolving quickly, the type of talent and skills needed for the future remain uncertain. So companies aren’t hiring, even temporary workers.    

Other ways workers bridged the gap in the 90s was with part-time work and holding multiple jobs (1 full time and a part-time gig).

This way of working offered a transition for workers back to full-time permanent employment. Because the job market did heat up after the initial slowdown in the 90s.

That being said this transition was a bit uncomfortable for many.

Pay Cuts And Transitions

It was uncomfortable mostly because the lack of job security forced people to cling to or find jobs that offered stability.

Which meant lower wages. Sound familiar?

In the 90s, workers may have sacrificed wage growth for a more secure relationship with their current employers⁴.

As the recalibration unfolded, many people (half of those laid off) ended up switching industries, though still did similar types of jobs.

More jobs became available as companies reorganized for the new technology. Job security improved and compensation rebounded for the majority of workers.

The relationship between employer and employee began to change though...

Job security was less evident than prior to the 90s, job switching increased, and tenure shrunk. People held on to multiple jobs through the late 90s.

There were lasting impacts on the way we work.

The trends today are reminiscent of the 90s. 

Bottom Line

I believe we are in an awkward recalibration period. My guess, we have anywhere from 6-12 more months of it.

Hang tight, things will get better.

🆕Work Humor🆕 

Soooo, I thought it would be fun to add some humor to this newsletter. Especially since you are getting it on a Friday!

I’m going to use this section to include a meme, joke, social media thread or new article about work/careers/life that will hopefully leave a smile on your face.

Please, please send me any funny stuff you come across!!!! (my email is [email protected], or reply to these emails)

Lets have fun together!

This week I’m sharing a IG post that made me LOL. 🤣 Hopefully we have the same humor…

Let’s make The Shift!

P.S. Linking my TEDx Talk again - please watch, like, comment, and share to help me spread the word. 🙏

Lindsey

Sources:

1. ADP.

2. AuthorityHacker, March 2024.

3. U.S. Bureau of Labor Statistics.

4. Federal Reserve Bank of Chicago.