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The effect of economic recession on employee job security: A study of manufacturing firms in Umuahia North Local Government Area, Abia State

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  • NGN 5000

Background of the study:
Economic recessions pose significant challenges for industries, particularly in the manufacturing sector. In Umuahia North, Abia State, manufacturing firms face uncertainties that directly impact employee job security (Adams, 2023). This study examines how economic downturns affect workforce stability, organizational restructuring, and employee morale. Recessions often lead to reduced demand, production cutbacks, and cost-saving measures, which can include layoffs and altered employment contracts (Brown, 2024). The research delves into the dynamics of economic cycles and their repercussions on labor markets, highlighting the vulnerability of workers during periods of economic instability (Clark, 2025). By integrating statistical analyses with employee testimonials, the study investigates the extent to which economic recession influences job security, examines coping strategies adopted by firms, and explores the implications for long-term career development. This analysis is critical for developing policies that safeguard employees and ensure sustainable economic practices during downturns.

Statement of the problem:
Manufacturing firms in Umuahia North are experiencing heightened job insecurity due to economic recession pressures (Adams, 2023). Employees face reduced hours, layoffs, and uncertain career prospects, which negatively impact morale and productivity. This study investigates the relationship between economic downturns and job security, seeking to understand how recessions undermine employment stability. It also examines measures that could mitigate adverse effects on workers (Brown, 2024; Clark, 2025).

Objectives of the study:

  • To evaluate the impact of economic recession on job security in manufacturing firms.

  • To identify the factors that exacerbate job insecurity during economic downturns.

  • To propose strategies to enhance employee security and organizational resilience.

Research questions:

  • How does economic recession affect job security among manufacturing employees?

  • What are the key factors contributing to job insecurity during recessions?

  • What strategies can manufacturing firms adopt to mitigate the effects of economic downturns on employment?

Research Hypotheses:

  • Economic recession significantly reduces job security in manufacturing firms.

  • Inadequate crisis management increases employee vulnerability during downturns.

  • Strategic workforce planning can mitigate the impact of economic recessions on job security.

Significance of the study:
This study provides essential insights into the effects of economic recessions on job security, offering recommendations that could help manufacturing firms protect their workforce and enhance organizational stability (Clark, 2025).

Scope and limitations of the study:
This study is limited to manufacturing firms in Umuahia North Local Government Area, Abia State, focusing exclusively on the impact of economic recession on employee job security. It does not include other sectors or economic variables.

Definitions of terms:

  • Economic recession: A significant decline in economic activity across the economy lasting longer than a few months.

  • Job security: The assurance of continued employment.

  • Manufacturing firms: Companies engaged in the production of goods through labor, machinery, and chemical or biological processing.





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