Unemployment and Re-Employment of Displaced Workers

Abstract

Examines the incidence and adjustment experiences of workers who are displaced by economic change. Since the mid-1970s, the aggregate annual rate of retrenchment has fluctuated in a counter-cyclical pattern around a relatively stable long-term trend of about 5 percent. The paper shows that the probability of retrenchment and the nature of post-retrenchment adjustment varies between different groups of workers and depends on general economic conditions.

Keywords: unemployment, re-employment, employment, displaced workers, labor, retrenchment, occupations, casual employment, job

JEL Classification: J