Back to Work: United States
Improving the Re-employment Prospects of Displaced Workers
Job displacement (involuntary job loss due to firm closure or downsizing) affects
many workers over their lifetime. Displaced workers may face long periods of unemployment
and, even when they find new jobs, tend to be paid less and have fewer benefits than
in their prior jobs. Helping them get back into good jobs quickly should be a key
goal of labour market policy. This report is part of a series of nine reports looking
at how this challenge is being tackled in a number of OECD countries. It shows that
the United States has a relatively high rate of job displacement and that only one
in two affected workers find a new job within one year. Older displaced workers and
those with a low level of education fare worst. Contrary to most other OECD countries,
displaced workers have long been a target group for policy intervention, and a number
of system features, like rapid response services, are promising. But the success of
US policies is limited because overall funding for the workforce development system
is insufficient and because only trade-related job displacement comes with generous
entitlement for training and better benefits.
Published on December 06, 2016
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