IWS Documented News INTERNATIONAL

IWS Documented News Service
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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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Congressional Budget Office (CBO)

Economic and Budget Issue Brief

 

LOSING A JOB DURING A RECESSION [22 April 2010]

http://www.cbo.gov/doc.cfm?index=11429&type=1

[full-text, 8 pages]

 

[excerpt]

Each year, even when the economy is growing, millions

of people lose a job for reasons other than poor performance

or misconduct. The ability of employers to

quickly adjust the size of their workforces in response to

changes in demand is generally considered a source of

strength for the U.S. economy over the long term,

because it prompts a shift of labor resources toward areas

of higher productivity. Some people, however, bear substantial

costs from employers’ flexibility—particularly

during recessions, when many people lose jobs and new

opportunities are relatively scarce.

 

This issue brief reviews the research on the short- and

long-term effects of involuntary job loss for reasons other

than poor performance or misconduct on people’s future

employment and earnings.1 In light of the recession that

began in December 2007 and the Congressional Budget

Office’s (CBO’s) projection that, under current law, the

unemployment rate will remain elevated for a number of

years, the brief focuses on the effects of involuntary job

loss during periods of weak economic activity.2 The brief

also summarizes some of the government programs that

help people who have lost their job.

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This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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