The changing face of job loss in the United States, 1981-1995

How job loss varies across economic and demographic groups and over the business cycle is described. The earlier work using more recent data from the Displaced Workers Survey published by the Bureau of the Census is updated, and the reasons workers give for their job loss is the focus. Two key facts emerge from this new analysis. First, it is found that the overall rate of job loss has increased during the 1990s, despite the improving economy. Second, the relative rates of job loss for specific reasons have been changing. The main analyses compare 3-year job-loss rates calculated from 7 Displaced Workers Surveys. The rate of job loss varied from 10% to 13% during the 1980s but increased to 15% in the 1990s. Interesting differences are found in the reasons given for displacement. Most of the increase in displacement in the 1990s appears to be due to an increase in the number of workers listing "other" than traditional reasons for job loss. More educated workers also have experienced an increase in job loss because firms have abolished their positions in greater numbers.