Less than a third of the workers who lost their jobs in the Great Recession have made it back, or are climbing back, to where they were before, according to a Rutgers University study.
In August, 2009, researchers at Rutgers Center for Workforce Development interviewed about 1,200 workers, representing a cross-section of the population, who’d lost their jobs during the preceding year, and the researchers followed them for the next two years to see how they made out. The chart at right shows what they found out.
The meaning of the five categories is as follows.
- Workers who have MADE IT BACK consider themselves in excellent, good, or fair financial shape and have experienced no change in their standard of living due to the recession.
- People ON THEIR WAY BACK have largely experienced a minor change to their standard of living, but say the change is temporary. They also consider themselves in excellent, good, or fair financial shape.
- Workers who have been DOWNSIZED meet one of three conditions; they have experienced: a minor change that is permanent; a minor change that is temporary, but they are in poor financial shape; or a major change in their standard of living that is temporary and they are in at least fair financial shape.
- Workers classified as DEVASTATED have experienced a major change to their lifestyle due to the recession. They can be either in poor financial shape and think the change is temporary, or in fair financial shape but think this change is permanent.
- Workers that have been TOTALLY WRECKED by this recession have experienced a major change to their lifestyle that is permanent and are in poor financial shape.
Source: Jesse’s Café Américain
Of the 1,202 workers questioned, 47 percent rated their personal financial situation as “poor” and 36 percent “only fair.” The economic situation has had a “major impact” on 58 percent, and 41 percent expect the changes to be permanent.
Click on Categorizing the Unemployed PDF for the full study.
Hat tip to Digby at Hullabaloo.