Title: Understanding and Addressing the Challenges of Job Loss for Low-Wage Workers
Abstract: When it comes to the debate over and related programs, America's low-wage workers seem to get little attention. Research and policy discussions about the impact of on U.S. workers tend to focus on workers who have work experience in skilled positions. In particular, research and programs often focus on the worker, defined as an employee who loses his or her due to plant closures or relocation, insufficient work available, or positions or shifts being eliminated. In this era of technological change and global competition, the term conjures up images of high-tech jobs moved overseas and factory production workers increasingly replaced by automated processes. By definition, these workers are relatively long tenured. The focus on experienced workers is repeated among those who conduct research on loss. For example, although the U.S. Bureau of Labor Statistics (BLS) collects data on the full spectrum of displaced workers, it analyzes and publishes data only on those workers who held the they were displaced from for at least three years. Many policy responses favor these workers as well. Trade Adjustment Act programs, Rapid Response initiatives, and high-tech training programs are all designed to meet the needs of this category of workers. In reality, changes in the demand for workers, and the consequent losses that occur, are found at all levels of the work force. For workers at the low end of the employment spectrum in terms of wages and skills, the consequences of losing a are just as serious as for their skilled counterparts, while the support and options available to them are substantially more limited. The effects of may be as much tied to the income level of the separated worker as any other factors. In this article, I review the statistics on loss, showing that while workers are actually the majority of those who experience loss, little data are available about their economic circumstances or skill levels. I then describe the precarious economic status of these workers, the insufficiency of safety net programs for them, and the under-investment in training that might help them attain more reliably marketable skills. As a result, I argue that there is a need to provide the same research, analysis, services, and resources to low-wage workers as to high-paid workers. It is in our economic self-interest to reach out to this under-studied and under-served segment--for as the country looks ahead to shortages of skilled workers, the current low-paid work force will be a critical resource for future economic growth. Displaced low-wage workers: The overlooked majority Although little research has been done on among low-wage workers, there is no doubt that the number of people in this group who are struggling with the consequences of losing their jobs is far greater than the number of experienced, displaced workers. From 2001 to 2003, 5.3 million long-tenured workers were displaced from jobs (jobs they had held for at least three years). However, an additional 6.1 million short-tenured workers were displaced during the same period. (1) And, with the broadest definition of job loss referring to anyone who did not leave a voluntarily, there were 18.6 million layoffs or discharges in 2003 alone. (2) Since BLS does not publish information about this group of workers, policymakers have no readily available information about who those workers are. Data collection for this largest group of workers comes from employer surveys and, therefore, includes no worker-specific information, such as the earnings or education levels of the workers who have lost their jobs. The absence of readily available information contributes to the difficulties of identifying, and ultimately addressing, the needs of low-wage workers who lose their jobs. The current focus on workers with longer stability and higher skill levels tends to minimize the discussion about three types of workers who are particularly hard hit by losing their jobs. …
Publication Year: 2005
Publication Date: 2005-06-22
Language: en
Type: article
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Cited By Count: 4
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