Even Short Bouts of Unemployment Cause Lasting Setbacks

In the depths of the recession, from October 2008 to April 2009, around 700,000 people lost their jobs every month. Many of these workers remained jobless for long stretches of time, as this downturn produced the highest levels of long-term unemployment in six decades. Yet even those who found new jobs relatively quickly have experienced lasting setbacks. Two years after losing their jobs, workers who are reemployed are earning 17% less than they previously made, according to a new analysis by the Brookings Institution’s Hamilton Project. The lost income averages about $600 per month.

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