Worker Displacement News Release

For release 10:00 a.m. (ET) Friday, August 26, 2022 				USDL-22-1715

Technical information:	(202) 691-6378  *  cpsinfo@bls.gov  *  www.bls.gov/cps
Media contact:		(202) 691-5902  *  PressOffice@bls.gov


				WORKER DISPLACEMENT: 2019-2021


From January 2019 through December 2021, there were 3.6 million workers displaced from jobs
they had held for at least 3 years, the U.S. Bureau of Labor Statistics reported today.
This was up by 924,000 workers from the prior survey period covering January 2017 to 
December 2019. In January 2022, 65 percent of workers displaced from 2019 to 2021 were
reemployed, down from 70 percent in January 2020. 

The U.S. Department of Labor's Chief Evaluation Office sponsored the January 2022 survey 
to collect information on workers who were displaced from their jobs. Since 1984, these
surveys have been conducted biennially in January as supplements to the Current Population
Survey (CPS), a monthly survey of households that is the primary source of information on
the nation's labor force. For further information, see the Technical Note in this news 
release.

Displaced workers are defined as persons 20 years of age and over who report that they lost
or left jobs because their plant or company closed or moved, there was insufficient work
for them to do, or their position or shift was abolished. The period covered in this study
was January 2019 to December 2021, the 3 calendar years prior to the January 2022 survey 
date. This period included the coronavirus (COVID-19) pandemic that began in early 2020. 
Those who were temporarily absent from a job due to a pandemic-related business closure or
reduced business hours are not considered displaced workers.

The following analysis focuses primarily on the 3.6 million people who had worked for their
employer for 3 or more years at the time of displacement (referred to as long-tenured 
workers). An additional 5.0 million persons were displaced from jobs they had held for less
than 3 years (referred to as short-tenured workers). Combining the short- and long-tenured
groups, the number of displaced workers totaled 8.6 million from 2019 to 2021. This is up
from 6.3 million for the 2017-19 survey period. 

Highlights from the January 2022 survey:

   --In January 2022, 65 percent of the 3.6 million long-tenured displaced workers were 
     reemployed, down from 70 percent in January 2020. (See table 1.)

   --Among long-tenured displaced workers age 65 and over, the reemployment rate declined
     by 15 percentage points from the prior survey and the proportion that were no longer
     in the labor force increased by 12 percentage points to 61 percent. (See table 1.)

   --Thirty-eight percent of long-tenured displaced workers from the 2019-21 period lost 
     their job because their plant or company closed down or moved, an additional 31 
     percent lost their job because their position or shift was abolished, and 31 percent 
     were displaced due to insufficient work. (See table 2.)

   --Sixteen percent of long-tenured displaced workers lost a job in leisure and 
     hospitality, 14 percent lost a job in professional and business services, and another 
     13 percent lost a job in manufacturing. (See table 4.) 

   --Among long-tenured workers who were displaced from full-time wage and salary jobs and
     were reemployed in such jobs in January 2022, 63 percent had earnings that were as 
     much or greater than those of their lost job, little different from the prior survey. 
     (See table 7.)

Characteristics of the Displaced

Sixty-five percent of the 3.6 million long-tenured displaced workers were reemployed at the
time of the survey in January 2022, down from 70 percent for the January 2020 survey. The
proportion unemployed at the time of the most recent survey was 12 percent, the same as in
January 2020. Twenty-two percent of long-tenured displaced workers were not in the labor 
force in January 2022, up from 18 percent in the previous survey. (See table 1.)

In January 2022, the reemployment rate was 72 percent for workers ages 25 to 54, little 
changed from the prior survey. Reemployment rates continued to be lower for older workers;
the rates for those ages 55 to 64 and 65 years and over were 64 percent and 29 percent, 
respectively. Among those age 65 and over, the reemployment rate declined by 15 percentage
points from the prior survey and the proportion that were no longer in the labor force 
increased by 12 percentage points to 61 percent. 

Among long-tenured displaced workers, men had a slightly higher reemployment rate than 
women in January 2022 (68 percent and 62 percent, respectively). The reemployment rate for
men changed little from the prior survey, while the rate for women declined. The 
proportions of long-tenured displaced men and women who were unemployed were little 
different in January 2022 (14 percent and 11 percent, respectively). The share of male
displaced workers who had left the labor force was little changed at 18 percent, while the
share of women increased by 7 percentage points to 27 percent from the prior survey. The
proportion of women leaving the labor force ages 25 to 54 rose by 11 percentage points to
22 percent in January 2022.

In January 2022, the reemployment rate for long-tenured displaced White workers declined
by 7 percentage points to 64 percent. The rates for Blacks (71 percent), Asians (66 
percent), and Hispanics (65 percent) changed little from the prior survey. In January 2022,
the proportion of unemployed long-tenured displaced Blacks declined by 14 percentage points
to 8 percent from the prior survey, while the proportion of Hispanics increased by 8 
percentage points to 17 percent over the same period. 

Reason for Job Loss and Receipt of Advance Notice 

Of the 3.6 million long-tenured workers displaced during January 2019 through December 
2021, 38 percent lost or left their jobs due to plant or company closings or moves, an 
additional 31 percent lost their job because their position or shift was abolished, and 31
percent were displaced due to insufficient work.

Thirty-nine percent of long-tenured displaced workers in 2019 to 2021 received written 
advance notice that their jobs would be terminated, down from 47 percent in 2017 to 2019.
Among workers who lost jobs during the 2019-21 period due to plant or company closings or 
moves, 49 percent received written advance notice, down from 60 percent for the prior 
survey period. By comparison, 43 percent of workers who were displaced because their 
position or shift was abolished and 25 percent of those who lost jobs due to insufficient
work were notified in advance, both little changed from 2017 to 2019. For each of these 
groups, reemployment rates were not statistically different for those who received written
advanced notice and those who did not. (See table 3.) 

Industry and Occupation

During the 2019 to 2021 period, 574,000 long-tenured leisure and hospitality workers were
displaced from their jobs--16 percent of all long-tenured displaced workers. This 
proportion increased from 5 percent in 2017 to 2019, reflecting the impact of the pandemic
on the industry. For the 2019 to 2021 period, workers in professional and business 
services accounted for 14 percent of all long-tenured displacements, manufacturing 
accounted for another 13 percent, and education and health services accounted for 12 
percent of all displacements. (See table 4.)
 
In January 2022, the reemployment rates for the other services industry (50 percent),
retail trade (61 percent), and leisure and hospitality (64 percent) declined significantly
from January 2020. These reemployment rates reflect the slower recovery from the COVID-19
pandemic in these industries. The rates for workers displaced from the other major 
industry groups changed little from the prior survey. (Workers were not necessarily 
reemployed in the same industries from which they were displaced.) 

By major occupational group, the reemployment rate decreased to 58 percent for sales and 
office occupations and to 68 percent for management, professional, and related occupations
in January 2022. Reemployment rates for other major occupational groups changed little 
from the prior survey. The January 2022 rates were 71 percent for those displaced from 
production, transportation, and material moving occupations; 65 percent for service 
occupations; and 63 percent for natural resources, construction, and maintenance 
occupations. (See table 5.) 

Geographic Divisions 

Compared with the 2017-19 period, the number of long-tenured workers displaced during the
2019-21 period increased for the Middle Atlantic, East North Central, West North Central,
South Atlantic, and Pacific divisions, and changed little for the other geographic
divisions of the United States. In January 2022, the reemployment rate increased to 72
percent for the East South Central division. The rate declined for the West South Central
(56 percent) and Mountain (67 percent) divisions. (See table 6.)

Earnings

Of the 2.0 million long-tenured displaced workers who lost full-time wage and salary jobs
during the 2019-21 period and were reemployed in January 2022, 1.6 million had full-time 
wage and salary jobs. Of the reemployed full-time workers who reported earnings on their 
lost job, the proportion that were earning as much or more than they did at their lost job
was 63 percent in January 2022, little different from the January 2020 survey. 
(See table 7.)

Total Displaced Workers (With No Tenure Restriction)

The total number of workers displaced between January 2019 and December 2021 (regardless
of how long they had held their jobs) was 8.6 million, up by 2.3 million from 2017 to
2019. Of the total number of workers who lost jobs over the 2019-21 period, 67 percent
were reemployed in January 2022, down by 4 percentage points from the January 2020 survey.
Fourteen percent of all displaced workers were unemployed, little different from the prior
survey, and the proportion not in the labor force rose by 5 percentage points to 19 
percent. (See table 8.)

Technical Note
 
  The data presented in this release were collected through a supplement to the January
2022 Current Population Survey (CPS), the monthly survey of about 60,000 eligible 
households that provides basic data on employment and unemployment for the nation.  The
CPS is conducted by the U.S. Census Bureau for the Bureau of Labor Statistics (BLS).
The purpose of this supplement was to obtain information on the number and 
characteristics of persons who had been displaced (as defined below) from their jobs
over the prior 3 calendar years. The collection of these data is sponsored by the 
Department of Labor's Chief Evaluation Office.

  Additional information, reports, and archived news releases are available at 
www.bls.gov/cps/lfcharacteristics.htm#displaced. 

  Data presented in this release are based on Census 2010 population controls that are
updated annually in January. Additional information, reports, and archived news release
are available at www.bls.gov/cps/documentation.htm#pop.

  If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to 
access telecommunications relay services.

Reliability of the estimates

  Statistics based on the CPS are subject to both sampling and nonsampling error. When
a sample, rather than the entire population, is surveyed, there is a chance that the
sample estimates may differ from the true population values they represent. The 
component of this difference that occurs because samples differ by chance is known as 
sampling error, and its variability is measured by the standard error of the estimate.
There is about a 90-percent chance, or level of confidence, that an estimate based on
a sample will differ by no more than 1.6 standard errors from the true population value
because of sampling error. BLS analyses are generally conducted at the 90-percent 
level of confidence.

  The CPS data also are affected by nonsampling error. Nonsampling error can occur for
many reasons, including the failure to sample a segment of the population, inability to
obtain information for all respondents in the sample, inability or unwillingness of 
respondents to provide correct information, and errors made in the collection or 
processing of the data.

  Information about the reliability of data from the CPS and guidance on estimating 
standard errors is available at www.bls.gov/cps/documentation.htm#reliability.

Concepts and questions

  Displaced workers are wage and salary workers 20 years of age and over who lost or 
left jobs because their plant or company closed or moved, there was insufficient work 
for them to do, or their position or shift was abolished. Data are often presented for
long-tenured displaced workers—those who had worked for their employer for 3 or more 
years at the time of displacement.

  Wage and salary workers receive wages, salaries, commissions, tips, payment in kind,
or piece rates. The group includes employees in both the private and public sectors 
but excludes all self-employed persons, both those with incorporated businesses as 
well as those with unincorporated businesses.

  Data discussed in this release on displaced workers were obtained from the following
questions:

  (This question was asked of all persons 20 years and over.) During the last 3 
calendar years, that is, January 2019 through December 2021, did (you/name) lose a job
or leave one because: (your/his/her) plant or company closed or moved, (your/his/her)
position or shift was abolished, insufficient work, or another similar reason?

  (If the respondent answered "yes" to the above question on job loss, the 
following question was then asked.) Which of these specific reasons describes why 
(name/you) (is/are) no longer working at that job?

    Plant or company closed down or moved
    Plant or company operating but lost or left job because of:
      Insufficient work
      Position or shift abolished
      Seasonal job completed
    Self-operated business failed
    Some other reason

  Respondents who provided one of the first three reasons—plant or company closed or
moved, insufficient work, or position or shift abolished—were classified as 
displaced and asked additional questions about the lost job, including how many 
years they had worked for their employer; the year the job was lost; the earnings,
industry, and occupation of the lost job; and whether health insurance had been
provided. Other questions were asked to determine what occurred before and after the
job loss, such as: Was the respondent notified of the upcoming dismissal?  How long
did he/she go without work? Did he/she receive unemployment benefits? And, if so,
were the benefits used up? Did the person move to another location after the job loss
to take or look for another job? Information also was collected about current health
insurance coverage (other than Medicare and Medicaid) and current earnings for those
employed at the time of the survey.