The Nation's Troubled Labor Markets and the Fate of Its Dislocated Workers

Despite a modest downtick in the aggregate unemployment rate due in part to labor force withdrawals, U.S. labor markets remain in a deep recession. High levels of open unemployment and underemployment and nearly 7 million hidden unemployed dominate the scene. The recent release by the U.S. Bureau of Labor Statistics of its January 2010 dislocated worker survey allowed us to identify the extraordinary impact of record high dislocation of U.S. workers over the 2007-2009 period, predominantly in the private for profit sector.

Between 2007 and 2009, there were 15.43 million U.S. workers who were displaced permanently from their jobs. This was by far the highest number of workers displaced over a three year period in the past 30 years for which we have such data. Nearly 11% of U.S. workers 20 and older were displaced from their jobs, the highest dislocation rate in our post-WWII history. While many key demographic groups experienced double-digit or near double-digit displacement rates, they were highest among younger workers (under 30), men, Blacks and Hispanics, those without post-secondary degrees including persons with 1-3 years of college, construction, manufacturing and mining industry workers, and most blue-collar occupations and lower level service occupations (food prep, janitors, office cleaners). Nearly 1 of every 5 White and Black males under age 35 with no college schooling were displaced, contributing to a depression among our nation's youngest male workers.

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