Earnings of Workers Who Lost Their Job in the Great Recession
November 4, 2011
Between 2007 and 2009, roughly 7 million American workers lost their jobs and many are still unemployed. Recent research shows that their hardships continue beyond periods of unemployment – many of the workers who have found new jobs generally earn substantially less than they did in their previous positions. Before they suffered job losses, these workers made roughly $3,640 per month, or $43,700 annually on average. Two years following their job loss, the average earnings of this group was reduced to $1,910 per month, about $23,000 annually—48 percent lower than their average pre-job earnings. Looking only at those workers who were able to find new jobs, this group still suffered a significant earnings loss, making an average of $2,420 in the month ($29,000 annually) after their job loss, and $3,030 per month ($36,400 annually) two years later—17 percent less than they earned in the months before they lost their job.