For release 10:00 a.m. (ET) Thursday, August 29, 2024 USDL-24-1777
Technical information: (202) 691-6378 * cpsinfo@bls.gov * www.bls.gov/cps
Media contact: (202) 691-5902 * PressOffice@bls.gov
WORKER DISPLACEMENT: 2021-2023
From January 2021 through December 2023, there were 2.6 million workers displaced from jobs
they had held for at least 3 years, the U.S. Bureau of Labor Statistics reported today. This
was down by 1.0 million workers from the prior survey period covering January 2019 to December
2021. In January 2024, 65.7 percent of long-tenured workers displaced from 2021 to 2023 were
reemployed, little different from the percentage in January 2022.
The U.S. Department of Labor's Chief Evaluation Office sponsored the January 2024 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 people 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
2021 to December 2023, the 3 calendar years prior to the January 2024 survey date. This period
included some ongoing effects of the coronavirus (COVID-19) pandemic (which began in early
2020) and a time of economic recovery. 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 2.6 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 3.7 million people 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 6.3 million from 2021 to 2023. This is down
from 8.6 million for the 2019-21 survey period.
Highlights from the January 2024 survey:
--In January 2024, 65.7 percent of the 2.6 million long-tenured displaced workers were
reemployed, similar to 65.2 percent in January 2022. (See table 1.)
--In the 2021-23 period, 37.5 percent of long-tenured displaced workers lost their job
because their position or shift was abolished. An additional 36.5 percent lost their
job because their plant or company closed down or moved, and 26.0 percent were displaced
due to insufficient work. (See table 2.)
--Seventeen percent of long-tenured displaced workers lost a job in manufacturing, 15 percent
lost a job in professional and business services, 10 percent lost a job in retail trade,
and another 10 percent lost a job in health care and social assistance. (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 2024, 62 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
At the time of the survey in January 2024, 65.7 percent of the 2.6 million long-tenured
displaced workers were reemployed, little different from 65.2 percent for the January 2022
survey. The proportion unemployed at the time of the most recent survey was 16.1 percent, up
from 12.4 percent in January 2022. The remaining 18.2 percent of long-tenured displaced
workers were not in the labor force in January 2024, down from 22.3 percent in the previous
survey. (See table 1.)
The reemployment rate was 74.5 percent in January 2024 for people of prime working age (those
ages 25 to 54), little changed from the prior survey. Reemployment rates continued to be lower
for older workers; the rate for those ages 55 to 64, at 55.3 percent, fell by about 9
percentage points since data were last collected. The rate for those age 65 and older changed
little at 34.4 percent.
Among long-tenured displaced workers, men and women had similar reemployment rates in January
2024 (65.2 percent and 66.2 percent, respectively), both little different from the prior survey.
The proportion of long-tenured displaced men who were unemployed in January 2024 was 14.9 percent,
little changed from the share in January 2022. The share of displaced women who were unemployed
was 17.6 percent in January 2024, about 6 percentage points higher than the prior survey. The share
of male displaced workers who had left the labor force was little changed at 19.9 percent, while
the share of women at 16.2 percent decreased by about 11 percentage points from the prior survey.
The proportion of displaced women ages 25 to 54 leaving the labor force fell by about 13 percentage
points to 8.8 percent in January 2024.
In January 2024, the reemployment rates for long-tenured displaced White workers (64.1
percent), Black workers (72.7 percent), Asians (63.5 percent), and Hispanics (67.0 percent)
changed little from the prior survey. In January 2024, the proportion of unemployed long-
tenured displaced White workers increased to 16.2 percent from the prior survey, while the
rates for the other major race and ethnicity groups were little changed.
Reason for Job Loss and Receipt of Advance Notice
Of the 2.6 million long-tenured workers displaced during January 2021 through December 2023,
37.5 percent lost their job because their position or shift was abolished, an additional 36.5
percent lost or left their jobs due to plant or company closings or moves, and 26.0 percent
were displaced due to insufficient work. (See table 2.)
From 2021 to 2023, about 46 percent of long-tenured displaced workers received written advance
notice that their jobs would be terminated, up from 39 percent in the previous survey. Among
workers who lost jobs during the 2021-23 period due to plant or company closings or moves, 61
percent received written advance notice, up from 49 percent for the prior survey period. By
comparison, 42 percent of workers who were displaced because their position or shift was
abolished and 29 percent of those who lost jobs due to insufficient work were notified in
advance, both little changed from the 2019 to 2021 period. For each of these displacement
groups, reemployment rates were not statistically different for those who received written
advance notice and those who did not. (See table 3.)
Industry and Occupation
During the 2021 to 2023 period, 427,000 long-tenured manufacturing workers were displaced from
their jobs--17 percent of all long-tenured displaced workers. These displacements occurred
mostly in durable goods manufacturing (265,000). For the 2021 to 2023 period, workers in
professional and business services accounted for 15 percent of all long-tenured displacements,
retail trade accounted for 10 percent, and health care and social assistance accounted for
another 10 percent of all displacements. Leisure and hospitality accounted for 7 percent of
displacements, down from 16 percent in the 2019 to 2021 period. (See table 4.)
In January 2024, the reemployment rates for workers displaced from each of the major industry
groups were not statistically different from the rates in 2022. (Workers were not necessarily
reemployed in the same industries from which they were displaced.)
By major occupational group, the reemployment rates for workers displaced from each group
changed little from the prior survey. The January 2024 rates were 73.7 percent for those
displaced from production, transportation, and material moving occupations; 73.5 percent for
service occupations; 67.0 percent for sales and office occupations; 63.1 percent for
management, professional, and related occupations; and 54.8 percent for natural resources,
construction, and maintenance occupations. Among displaced workers from sales and office
occupations, the proportion unemployed rose to 18.6 percent from the prior survey period while
the proportion not in the labor force declined to 14.4 percent. The proportions of displaced
workers who were either unemployed or not in the labor force were not statistically different
from the prior survey for the other major occupational groups. (See table 5.)
Geographic Divisions
Compared with the 2019-21 period, the number of long-tenured workers displaced during the
2021-23 period decreased for the East North Central, West North Central, South Atlantic, East
South Central, West South Central, and Pacific divisions, and changed little for the other
geographic divisions of the United States. In January 2024, the reemployment rate for each
U.S. geographic division changed little. The share of long-tenured displaced workers who were
unemployed in January 2024 increased in the South Atlantic and East North Central divisions.
The proportion unemployed was little changed since the prior survey for the other geographic
divisions. (See table 6.)
Earnings
Of the 1.4 million long-tenured displaced workers who lost full-time wage and salary jobs
during the 2021-23 period and were reemployed in January 2024, 1.1 million had full-time wage
and salary jobs. Of the reemployed full-time wage and salary workers who reported earnings on
their lost job, 62 percent were earning as much or more in January 2024 as they did at their
lost job, little different from the prior survey. (See table 7.)
Total Displaced Workers (With No Tenure Restriction)
The total number of workers displaced between January 2021 and December 2023 (regardless of
how long they had held their jobs) was 6.3 million, down by 2.3 million from the prior survey.
Of the total number of displaced workers over the 2021-23 period, 68.7 percent were reemployed
in January 2024, little different from the January 2022 survey. The share of displaced workers
who were unemployed in January 2024 was 16.4 percent, up from 13.8 percent in the prior
survey. The proportion not in the labor force declined by 4.3 percentage points to 14.9
percent. (See table 8.)
United States Department of Labor
