Using data from the Displaced Worker Survey Current Population Survey this paper examines displaced workers between 1997 and 1999, a period of strong economic growth, and compares it with displaced workers between 1993 and 1995. We find that between 1997 and 1999, 7.5 million workers reported losing a job for negative economic reasons. This represents 6 percent of the employed population between 1997 and 1999. In contrast, 9.4 million workers, or 8.2 percent of the employed population, reported losing a job for negative economic reasons between 1993 and 1995. Among the 9.4 million displaced workers in 1993-1995, 35 percent attributed the job loss to a plant or company move or closure, 40 percent to insufficient work, and 26 percent to a job shift or abolished position. In comparison, among workers displaced during 1997-1999, 42 percent attributed their job loss to a plant or company move or closure, 33 percent to insufficient work, and 25 percent to a job shift or abolished position. While the data presented in this paper are a reminder of trends before the 2001 economic slowdown, they are important to understand because they provide a baseline of data before 2001 and can inform the debate on economic stimulus to better provide sound public policy regarding income security and employee benefits, such as health insurance and retirement income benefits. Currently, displaced workers have very few options when it comes to continuing health insurance coverage, which may ultimately affect the current financial well being of displaced workers. In contrast, temporary displacement from employment may or may not have a long-term impact on retirement income security. Given that 71 percent of displaced workers had tenure levels of less than five years, many of those displaced potentially could have lost retirement benefits if they were plan participants. However, displaced workers are younger, on average, than the workers in the labor force and retirement plan participation tends to be low among younger workers. This means that not all displaced workers will be in a position of losing retirement benefits from their current job since they may not have any retirement benefits to begin with
