Don't shoot the messenger. Yet again, unsettling information about what this recession will bring to those affected:
[T]he jobless may find that the more lasting damage actually occurs when they return to work.
It's common to take a pay cut after a job loss. But the reduced income is likely to be permanent for workers who become unemployed during an economic downturn, a new study from the Brookings Institution shows.
Of workers who lost a job during a time of high unemployment (and had been on the job for three years or more), 75% were still earning less than they did before their job loss, even 20 years later, according to the study. The pay hit is likely to be about $112,000 on average, or 19% of their lifetime earnings.
It's doubtful most of those workers will ever catch up to where their earnings would have been had they been able to stay on the job, said Columbia University economics professor Til von Wachter, one of the authors of the study.
Ouch. This is brutal information for those already emotionally devestated by being out of work. The possiblity that their income could be drastically reduced for years and years to come is enough to overwhelm anyone.
If you were unemployed, and are now back on the job, did you change industries? Are you now working in a different field? We'd love for you to comment and create a discussion.
[Photo by Dee Kuijer]