March 19, 2013

One Third of Re-employed People from 2009-2011 Took 20% Paycuts

This article on CBS from last summer : Most laid-off workers take pay cuts in new jobs says : 

Only 56 percent of Americans laid off from January 2009 through December 2011 had found jobs by the start of this year, the Labor Department said Friday. More than half of them took jobs with lower pay. One-third took pay cuts of 20 percent or more.
 That last bit there I underlined. 

One third of the people who lost jobs from 2009 to 2011 and found another job took a pay cut of 20% or more.

Thats pretty severe impact on a lot of people.

Later they say :
Baker noted that only 15 percent of those laid off in 2009 through 2011 have found new jobs with equal or higher pay. That compares with 25 percent in the three years before the recession.
 Again I underlined that bit.

I'm sure we all know the recent recession was pretty bad.   Note I'm putting the recession in the past tense here but thats the technical definition, as the recession is actually long gone. Thats not to say the economy is doing well now as the recovery has been pretty slow.

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2 comments:

  1. Interesting! The biggest job prospect I have right now would require, you guessed it, a 20% pay cut!

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  2. Thanks Jim, great find. I have been wondering about this very issue. Myself, I have not had a raise in 5 years, had my hours cut, and though there are opportunities for employment they all seem to be for more than 20% less. So, I stay and work 20% fewer hours for what would be the same net money. Yuck. No solution in sight.

    Jose, keeping good thoughts for you on your search!

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