Most laid-off U.S. workers take pay cuts in new jobs

The U.S. economic recovery hasn’t felt much like one, even for people who managed to find new jobs after being laid off. Most of them have had to settle for less pay, according to a new report released by the Labor Department today. Only 56% of Americans laid off from January 2009 through December 2011 had found jobs by the start of this year. More than half of them took jobs with lower pay. One-third took pay cuts of 20% or more. The figures would be even lower if people who could find only part-time jobs were included in the total. The report provides an illustration of the job market’s persistent weakness well after the Great Recession officially ended in June 2009. It also documents that while the economy has added nearly 3 million jobs since the recovery began, many pay less than those that were lost. Laid-off workers always have a harder time finding new jobs than do people who quit. But according to government data going back to 1984, people who lost jobs in the current recovery are having an especially hard time finding new work. More details are available in the full story here.