Brief Financial Consequences of Long-Term Unemployment during the Great Recession and Recovery
Richard W. Johnson, Alice Feng
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Extended job loss dealt a serious financial blow to many workers during the Great Recession and recovery. Despite the protection provided by unemployment insurance benefits, family incomes fell 40 percent or more for half of workers unemployed for at least six consecutive months between August 2008 and December 2011. About a quarter began experiencing economic hardship, including more than a third of African Americans, Hispanics, and unmarried adults. Social Security shielded most workers ages 62 and older from the worst outcomes, although early retirees receive lower monthly retirement checks for the rest of their lives, possibly causing financial hardship later.
Research Areas Economic mobility and inequality Wealth and financial well-being Aging and retirement Social safety net
Tags Economic well-being Welfare and safety net programs Older workers Employment and income data Income and wealth distribution Unemployment and unemployment insurance Retirement policy
Policy Centers Income and Benefits Policy Center