Laid Off Workers Report Lack of Severance and Taking Lower Pay

While this is good news, layoffs have had a major financial impact on workers. According to a CareerBuilder press release, only 32% received a severance package from their employers.

Sixty-nine percent reported the severance sustained them for two months or less, while one-in-four said it sustained them for less than one month. Forty-five percent of workers who were laid off in the last year had to tap into long-term savings as a result of losing their jobs, the press release said.

In addition, workers reported taking pay reductions and adjusting hours to keep a steady paycheck. Nearly half of workers (49%) who were laid off in the last 12 months and landed new positions took a job with less pay; 15% were able to negotiate higher compensation. One-in-five took a job with fewer hours while 12% took on more hours.

Finding a new job could also involve relocation expenses. The survey found 13% of workers who were laid off in the last 12 months and found jobs relocated to a new city or state. Of those who are still looking for employment, 39% reported they would consider relocating for a job opportunity.

Securing employment could also mean career changes for some. Thirty-eight percent of workers who were laid off in the last 12 months and landed new positions said they found work in a different field from where they were previously employed, and 70% of them reported they really enjoy the new opportunity. Of those workers who are still job hunting, 44% are looking for work outside of their profession.

One-in-four workers who have not found jobs are considering starting their own business.

The survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder between February 20 and March 11, 2009, among 807 U.S. workers ages 18 and over who have been laid off in the past 12 months from a full-time position.