Permanent Pay Cuts Are A Fact Of Life For Many

The jobless aren’t the only ones who are suffering during the economic downturn. Many of those who lose their jobs and find new ones take significant pay cuts, with little hope of reclaiming their former income levels.

The Wall Street Journal reports wages have slipped in recent years, and the last time there was such a significant drop was 1981 and 1982. The Journal relays Labor Department figures that found, from 2007 to 2009, 36 percent of those who were laid off from jobs they held for three or more years found new jobs that paid at least 20 percent less.

If you’ve been laid off and found new employment, how does your new paycheck compare to the old one?

Downturn’s Ugly Trademark: Steep, Lasting Drop in Wages [The Wall Street Journal]
(Thanks, Jeffrey!)

Previously: American Pay Dipped 3.2 Percent Last Year

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.