Montana.Dept. of Labor And Industry.Research And Analysis Bureau
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In fact, of the 11 industries that expe- rienced layoff events, only two had pre-layoff incomes above the industry average. This income disparity is a likely indication that experience and seniority played a role in determining which workers were laid-off. In general, less experienced workers tend to be laid-off because businesses use seniority as a basis for choosing which employees to retain. Workers with less time at the business, and consequently lower salaries, are often eliminated first. ...The fact that this was observed in the majority of the industries appears to reinforce this conclusion. Many of the workers who were laid-off experienced strong wage increases when they were reemployed in new jobs. Before being laid-off, workers had an aver- age income of $24,543. Within a year of being laid-off. the average wage of these workers had decreased only slightly to $24,040.^ Two years after the layoff events, wages had surpassed their pre-layoff levels to reach $26,287. However, this wage growth was not uniform across industries.
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