Bouncing Back, But Not As High: Most Displaced Workers Take Pay Cuts
Most people who’ve lost their jobs are sliding down the employment ladder — presuming they’ve managed to get back on the ladder at all.
The latest Bureau of Labor Statistics report on “displaced workers” (economist-speak for people who’ve lost their jobs) finds that 56 percent of the people who’ve lost their jobs since 2009 are employed again, and more than half of those re-employed people took a pay cut in their new job. Some key points:
--In January 2012, 56 percent of the 6.1 million long-tenured displaced workers were reemployed, up from 49 percent for the prior survey in January 2010. --Forty percent of long-tenured displaced workers from the 2009-11 period cited insufficient work as the reason for their displacement, and 31 percent cited that their plant or company closed down or moved. --Nearly 1 in 5 long-tenured displaced workers lost a job in manufacturing. --Among long-tenured workers who were displaced from full-time wage and salary jobs and who were reemployed in such jobs in January 2012, 46 percent had earnings that were as much or greater than those of their lost job.