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NIOSH Programs > Economics > Economic Factors

Economics

Input: Economic Factors

The following are some examples of economic factors that may affect work and workplace characteristics that in turn affect the risk of injury and illnesses at the workplace. Some of the adverse consequences of these factors can be alleviated by occupational safety and health interventions that are appropriately designed and implemented, while others may be more difficult to address.

  • Companies that come under severe financial or competitive pressures may be tempted to save money in the short run by reducing attention to occupational safety and health, even in cases where it improves economic results in the medium to long run. For example, rising fuel and energy costs may force companies, particularly small- to medium-sized companies, to divert monies that otherwise would be targeted for safety and heath improvements to pay for rising operating costs in order to stay in business. Rising health care costs also may result in employers reducing or eliminating their contributions to worker health care plans.
  • Just-in-Time and Lean Manufacturing are current business models that minimize the amount of raw material in order to minimize overhead costs and improve process coordination. However, these models also place increased stresses on those workers who deliver raw materials, plan future production needs, and complete the manufacturing tasks under strict time deadlines.
  • Many facilities in manufacturing, mining, chemical processing, and health care keep operations open 24 hours a day, 7 days a week. Consequently, more individuals work on rotating or permanent shifts across these hours. Often this results in worker fatigue and sleep loss and may lead to increased incidence of injuries and illnesses.
  • The demographics of the working population have been changing dramatically. Many workers continue to work past “normal” retirement age by choice or necessity. The overall aging of the working U.S. population may result in higher risks of occupational injury and illness.
  • Individuals who work part-time, intermittently, or under contract are not offered the same benefits as individuals enjoyed by full-time workers and therefore may have to work long hours or at multiple jobs.
  • Some workers in construction, agriculture, and other sectors are paid by the job or in proportion to the quantity of their work output, and may be tempted to cut corners on safety to get the job done quickly.
  • Small agricultural operations may employ unpaid family workers (both young and old) to work on the farm, operate machinery or other equipment, or take care of livestock. This may result in increased injuries and illnesses. Long seasonal hours during planting and harvesting also may result in increased injuries.
  • There are many immigrant and minority workers, whose primary language is not English and who, therefore, may be less effectively trained and less aware of hazards and safe practices.
  • Rapid implementation of new security measures at airports, border crossings, and port facilities can raise worker stress levels and expose workers to new risks resulting from new technology and major staffing changes.
  • Other new technologies may adversely affect worker safety and health in unknown ways. For example, the rapid growth of nanotechnology exposes workers to engineered nano-particles whose effect on worker health has not yet been fully understood.
  • Home health care workers must travel to their patients’ residences, often in violent neighborhoods, where the workers’ safety and well-being can be an issue. Patients themselves may be obese, and homes without proper patient handling equipment put the home health care workers at increased risk of low back injury.
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Economics

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