Unemployment and Earnings Losses: The Long-Term Impacts of The Great Recession on American Workers

November 4, 2011 • Adam Looney, Michael Greenstone • Employment & Wages

Between 2007 and 2009, roughly 7 million Americans lost their long-term and often highly skilled jobs.  Many of these workers remain unemployed and those who have found new jobs generally earn substantially less than they did in their previous positions.  Recent research suggests that on average, these dislocated workers will lose approximately $112,000 over the remainder of their careers.  Therefore as a group, these seasoned workers will lose about $775 billion in lifetime earnings as a consequence of losing their jobs during the Great Recession.  In new Hamilton Project research, Michael Greenstone and Adam Looney explore the long-term impacts of the recent recession on American workers.  Their findings highlight the importance of directing resources toward successful training programs to help workers build new skills for the jobs of the future.  Read full report here.