Authors
Randall W Eberts
Publication date
2005/6/22
Journal
Economic Perspectives
Volume
29
Issue
2
Pages
75-85
Publisher
Federal Reserve Bank of Chicago
Description
Job loss Losing one’s job is often a traumatic experience. For many, a job represents more than a livelihood; it is closely linked to their identity and sense of selfworth and it often constitutes an important element of their social network. This is particularly true for those who have lost a job that they had held for many years. A plant closure or mass layoff can leave workers without a paycheck and without the social network that is essential in reconnecting with the work force. Therefore, in considering the process of becoming reemployed and the services that are available to assist in this process, it is important to recognize and deal with the emotions that laid-off workers need to overcome in getting back on their feet. These emotions closely follow the typical grieving process one goes through after the death of a loved one. The immediate reaction to the news of a layoff, or impending layoff, is denial—“It can’t happen to me.” Denial delays the job search process, and typically the longer one waits to start searching for another job, the harder it is to find one. To help initiate the process, local work force agencies are required to make contact with businesses within 48 hours following notification of a layoff/shutdown and to set up procedures to help workers cope with the news and begin to find new jobs. More proactive agencies respond as soon as they get word, many times through informal channels and periodic visits with employers, that a layoff may occur. Yet, it is not uncommon for the prospective displaced workers to ignore the news and fail to show up for orientation and services. Only as the business’s doors are closing do many workers begin to …
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