20 Layoff Related Facts and Statistics
The world of work can be challenging, particularly when you are faced with the harsh reality of job loss. Yet, within these trials often lie hidden opportunities and untapped potential.
Through a collection of layoff related statistics, we'll navigate the intricacies of layoffs, outplacement services, and their impact on employees/businesses. Let’s dig in!
20 Layoff-Related Facts and Statistics
1. 55% of organizations provide outplacement services to at least some employees following layoffs (Source: SHRM)
More and more companies may follow suit to maintain a positive corporate image and to care for their employees' well-being.
2. About 40% of companies provide outplacement services for all types of employees, not just executives (Source: SHRM)
The trend towards inclusive outplacement support may grow, promoting an equitable workplace.
3. Employees who use outplacement services find new jobs 20% faster than those who don't (Source: IMPACT Group)
This could incentivize more companies to offer such services, recognizing their value in supporting their employees.
4. Over 69% of organizations believe maintaining their brand reputation is the biggest advantage of offering outplacement services (Source: RiseSmart)
As retaining employees and reputation management grows in importance, expect a rise in outplacement offerings.
5. 58% of organizations offered outplacement services to safeguard against potential lawsuits (Source: RiseSmart)
This demonstrates outplacement services' protective role in softening the blow of being laid off, which could lead to broader adoption.
6. Around 20% of US employees have been laid off in the past five years (Source: Pew Research Center)
This high figure might prompt an increased need for outplacement services, especially as the economy fluctuates.
7. Workers aged 30 to 49 are the most likely to experience a layoff (Source: Bureau of Labor Statistics, 2018)
As new roles continue to develop with the changing work world and AI, outplacement services may significantly influence this demographic.
8. In 2020, the number of layoffs and discharges reached 21.9 million due to the COVID-19 pandemic (Source: Bureau of Labor Statistics, 2021)
While the global pandemic is “over,” the possibility of a similar global issue happening in the future may lead to a more significant need for outplacement services.
9. Almost 75% of companies have laid off employees due to economic pressures (Source: SHRM, 2020)
This suggests a sustained demand for outplacement services, particularly during economic downturns.
10. About 22 million jobs were lost in the US in the first two months of the COVID-19 pandemic (Source: Bureau of Labor Statistics)
This dramatic figure emphasizes the crucial role of outplacement services in times of crisis, as we mentioned above.
11. Laid-off workers have lower long-term earnings. Even 20 years later, workers who were laid off were earning 15-20% less than similar workers who were not (Source: National Bureau of Economic Research)
Outplacement services can help mitigate this by building skills and accelerating re-employment, leading to more significant usage.
12. A layoff survivor syndrome study showed that 81% of employees who kept their jobs experienced increased workload, and 77% noticed more stress (Source: APA)
This might trigger more organizations to use outplacement services to mitigate such effects and reassure the remaining staff is satisfied.
13. Less than half of employees are satisfied with their company's outplacement services (Source: CareerArc)
This suggests a significant opportunity for improving and customizing outplacement services. This gap in quality resources is why we started Turbo Transitions.
14. 61% of HR professionals say offering outplacement services improves relations with remaining employees (Source: RiseSmart)
Expect an increase in outplacement services as part of a comprehensive employee retention strategy.
15. A study showed that laid-off employees who receive outplacement assistance are re-employed 60% faster (Source: International Outplacement Alliance, 2020)
This will likely drive more companies to offer such services, recognizing their clear benefits in helping transitioning employees find careers fast.
16. 57% of job seekers who used outplacement services found a position in their desired field (Source: CareerArc)
This success rate will likely spur more companies to implement these services.
17. The average job search in the U.S takes about 9 weeks (Source: Bureau of Labor Statistics, 2020)
This length of time reinforces the need for supportive services like outplacement to help job seekers find jobs.
18. Outplacement participants who worked with a career coach were 2.67 times more likely to find a job (Source: Lee Hecht Harrison)
This highlights the value of personal coaching within outplacement services.
19. In 2020, 75% of HR leaders reported that layoffs due to COVID-19 had negatively affected employee engagement (Source: Gartner, 2020)
This may push companies to offer outplacement services as part of their engagement strategy post-layoff.
20. During the COVID-19 pandemic, the highest job losses were in the leisure and hospitality industry, with 8.2 million jobs lost (Source: Bureau of Labor Statistics, 2020)
This sector might therefore see a high demand for outplacement services to aid in employee transition.
Unemployment Rate by Year
Wrapping Up | Layoff Statistics
There you have it—a whirlwind tour through the complex world of outplacement services and layoffs. These statistics shine a light on the challenges and opportunities within these seemingly daunting processes.
It's evident that layoffs, though tough, don't signify the end. Instead, they often open doors to new beginnings, especially when businesses employ thoughtful strategies like outplacement services.
Outplacement services can turn a job loss into a springboard for career growth by fostering resilience and readiness.
Here's to navigating the changing tides of employment, armed with knowledge and optimism, in pursuit of brighter horizons.
Best of luck out there!
Job Elimination Due to Restructuring
Tags: Layoff statistics, layoff stats, unemployment statistics
Author: Reid Alexander
Disclaimer: This content is for informational purposes only & not intended as professional legal or HR advice. Consult with qualified professionals for advice tailored to your specific situation. The author & publisher disclaim any liability for errors, omissions, or actions taken based on this content.