What Happens to the Laid-Off Worker?
August 27, 2012 10:04 am
Each month, the Bureau of Labor Statistics releases their summary of the employment situation. The statistics within are analyzed as economic indicators and used as political fodder, but the numbers are also known to be incomplete.
For example, the jobs reports do not include “discouraged workers,” who have stopped looking for jobs up to four weeks prior to the reports release, and demographic nuance is necessary for those looking to get a more accurate picture of the effects on unemployment.
The recent displaced workers report focuses on the ease or difficulty of recovering from a layoff. Displaced workers are workers who were laid-off due to the abolishment of their position, lack of sufficient work or a plant/company closing. During the period under study (the report is based off of a two year survey, covering January 2009 through December of 2011), 12.9 million workers were displaced; 56% of these workers have now obtained new employment. Of those who were able to find work, only 46% make as much or more than they did in their previous positions.
Men had a better chance at regaining employment than women (61% to 50%), and as observed elsewhere, older workers have had a particularly hard time rejoining the workforce after a layoff.
From the report:
In January 2012, reemployment rates were about 62 percent for workers ages 20 to 54. Reemployment rates were lower for older workers. The rates for those ages 55 to 64 and 65 years and over were 47 and 24 percent, respectively. Among those age 65 and over, 49 percent were no longer in the labor force when surveyed in January 2012.
It’s still tough out there — but as the report shows, it’s tougher still if you’re looking for a job that pays the same as you made before, are over age 55, or you’re a woman.
Image from here