Last Updated:September 30 @ 06:58 pm

In Obama's economy most laid off workers take pay cuts in new jobs

By Christopher S. Rugaber

WASHINGTON (AP) -- The U.S. economic recovery hasn't felt much like one even for people who managed to find new jobs after being laid off. Most of them have had to settle for less pay.

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.

The figures would be even lower if people who could find only part-time jobs were included in the total.

The report provides an illustration of the job market's persistent weakness well after the Great Recession officially ended in June 2009. It also documents that while the economy has added nearly 3 million jobs since the recovery began, many pay less than those that were lost.

Laid-off workers always have a harder time finding new jobs than do people who quit. But since the government began tracking such data in 1984, people who lost jobs in a recovery haven't had it as hard as they did in the one that began three years ago.

And the pay cuts in their new jobs usually aren't so deep.

For example, in 2003-2005, a period that included a slow recovery, nearly 70 percent of those who were laid off found jobs. More than half who found full-time work in the three years ending in 2005 did so at the same or higher pay.

The government compiles data on laid-off workers every two years. The report covers only people who had worked at least three years in the same job before being laid off. In doing so, it focuses on those who had stable careers before they lost work.

The figures show some improvement compared with the previous report, which covered 2007 through 2009, coinciding with the Great Recession.

But compared with most other recoveries, "this is really bad," said Dean Baker, an economist and co-director of the Center for Economic Policy Research.

Baker noted that of the 6.1 million people who lost jobs from 2009 through 2011, only 15 percent have found new ones with equal or higher pay. That compares with 25 percent in the three years before the recession.

"You were much more likely to be re-employed in 2007 at the same or higher wage than now," he said.

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4 Comments

  1. joelinpdxComment by joelinpdx
    August 24, 2012 @ 3:01 pm

    This is what U-6 is all about…people not working, people working for less, people working part-time. And surprise of surprises! It’s worse…much worse…under Obozo.

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  2. William WilsonComment by William Wilson
    August 24, 2012 @ 3:14 pm

    How many of the people who found new jobs are still collecting UNEMPLOYMENT???

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  3. mercyComment by mercy
    August 24, 2012 @ 3:49 pm

    How many people have had a raise in the past four years?

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  4. freedomfighterComment by freedomfighter
    August 24, 2012 @ 9:49 pm

    The President, term Used quite liberally, seems to want the same stew in every pot, well except for those living off the Government, OH, and the Unions, who obviously deserve much higher wages than those non union, OH, and the Government workers who collect their salary for life, along with all super benefits packages, and Secret Service protection FOR LIFE, and are exempt along with the rest from Obamacare. Even if you have been on a job since the first day you began working, you will not be able to retain your full salary, and benefits packages after you are fired. When a government official in any capacity is voted out of office, they are basically fired by the voters. Women fought for, and for the most part received equal pay for equal work, and this is fine, but why then should non union workers receive much less pay for the same type of work being done by Unions?. Unions used to be good for our Country in the beginning, but they got too greedy along the way. I am not complaining about Union Workers, but the outlandish wages and benefits packages the union takes more money from them each month to try and keep for them.
    When America as we know it is circling the drain, ready to be flushed down, ALL need to help, not just the rich, and very well paid. Cut some of those huge amounts of money being given to whole families who do absolutely nothing for it, but sit home and enjoy life at the tax payers expense. Have you seen him make this bold move?. Hell no, they are the ones he wants the votes from now, but I believe a different picture will be painted if he gets another chance to continue his destruction of our Country. Many changes, and none for the better, will come into play after 2013, certainly if he is still in power then. Read those pages, OBAMACARE, there are many, and it takes a long time to read, but you will see things at which you will say, This has nothing to do with healthcare. He is setting up things which will assure his continuation of his destruction, even to having phantom agencies created which will have power to over rule much of what is now. READ IT, please, before you vote if you even slightly entertain the notion of voting for him again. It is a real monstrosity, and will not begin it’s evils before 2013.

    I speak very boldly in here, and so far, I am still covered by free speech, but at the rate of decline in Constitutional values and freedoms, this could change dramatically within the next few months, however, if BIG changes are not made to the near daily walk around, and ignoring of that Document, this and many other freedoms will likely be removed from us. I will talk of freedom as long as I have a mouth, I will fight for freedom, as long as I have even hands and feet left. I will believe in, cherish, and Pray for freedom, as long as I have a last breath, and mind enough to remember.
    GOD BLESS THE USA, ITS PEOPLE, AND IT’S LIBERTY.

    TAKE OUT THE TRASH IN NOVEMBER, AND RID US OF THE NEXT RULLER, WHILE WE STILL HAVE THE OPPORTUNITY.

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