During the year 2008 alone, about 2.6 million jobs had disappeared in U.S.A as unemployment rate was hovering around 7.2 % in the fag end of 2008. (US Labor Department). It is painful to observe that more than 1 million jobs had vanished in the last three months of 2008 alone. The job loss reported in 2008 was the highest since 1945. There is strong evidence that the present economic chaos in the U.S was creating “grave employee related moral issues and linked performance and behavior issues. The current economic impact in the U.S has affected the employee’s fear and morale. Thus, my Research will conclude how current economic crisis have triggered the lay off decision by corporations in U.S.A and how the morale of the employees is deteriorating with the statistical evidence and corroborative evidence on the subject. Definition of Project variables I used a mixed methodology while conducting this research; qualitative to understand the behavior of employees and quantitative to look into data that pertained to the qualitative study. In this research study, economic recession is identified as independent variable and layoff has been identified as dependent variable. Scope of the project Research Objectives My research question is “Does employee morale in corporate America ultimately affects the way the economy functions in the U.S.A?” The purpose of the present investigation study is to understand the morale of employees in corporate America on how it affects the way the economy functions in the United States. Business case and need for research In this research study, the recent layoff initiatives perused by Google, Ford, Chrysler, General Motors, Boeing, Microsoft etc had been analyzed in detail to corroborate the same with the research objectives. Rationale and Research Benefits My hypothesis is that employee and even management treatment at their job can ultimately trickle down to how the economy itself functions. I believe it is important to succumb to high employee morale, because ultimately this will affect the way a company functions as a whole and carry on over to Wall Street and the economy. I am hoping that my findings will generate awareness starting at the bottom working towards the top with employees, management and executives, with that creating an awareness of self-worth in corporate America, because I believe this is how good business is conducted and is to be conducted. Problem Statement Majority of past research studies on the subject focused on consequences and antecedents of layoffs. (Brockner, 1988). Only recently, researchers started to look into the effect of layoffs for the surviving employees. (Brockner, 1988). Some of the survivor’s psychological experience includes:   * Insecurity feeling in job. In case of layoffs, the existing employees will have fear that further down sizing may be introduced at any time.   * Feeling of positive-inequity. If employees feel that they did not “justify” remaining inconsequential to their dismissed collogues.   * Feeling of antagonism- if the surviving employees feel that strategies of layoffs or the layoff itself were illegitimate and inappropriate.   * A feeling of relief – if survivors were in anxiety before the layoffs that they might me laid-off.   * The psycho