Layoff Nation

A couple of economists verified the obvious, when people are laid off they basically don't recover ...(oh, financially of course!).

In Long-Term Earnings Losses due to Mass Layoffs During the 1982 Recession: An Analysis Using U.S. Administrative Data from 1974 to 2004 (this is a preliminary paper), Researchers Wachter, Song & Manchester discover workers after 15-20 years still are not earning income at the level they were before being canned.

This has potentially important implications for the costs of economic adjustment in the U.S. economy. In particular, while the ability to fire ‘at will’ may benefit adjustment in the labor market as a whole, the costs in terms of lost productivity and earnings of individual workers may be much higher than typical replacement rates of unemployment insurance or other programs designed to smooth temporary earnings fluctuations.

blogger speak™ translation: layoffs suck, hurt people and in the long run, hurt the economy too.

Gets better. From the New York Times, we have once a victim more likedly to be victimized.

workers who endure a layoff are more likely to be laid off again

Oh God, that's bad because all of America at this point has been treated like disposable workers, so some attitude of throwaway people is now the norm?

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'New Normal'

If true means much higher and longer unemployment. If anything this 'New Normal' is a reason for better safety nets such as SINGLE PAYER health care.

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