Job displacement occurs when an employer removes a position that is currently being held by an employee. Displacement may be caused by several factors, including economic recessions and company restructuring. Several classes of workers are generally at a higher risk for displacement, including those with lower levels of education or experience. While younger personnel may be displaced due to fewer years on the job, they usually find work sooner than older displaced workers. Job displacement refers to involuntary job loss and not mutual or employee-instituted termination. Displacement can have life-long impacts on employees, as many must gain new skills or certifications to enter the labor force in a different capacity.
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