Weathering the Storm: The Impact of Cutbacks on Public Employees

Abstract

The United States saw mass layoffs and unemployment during the Great Recession, where jobs have been slow to recover especially in the government sector. Research on cutback management became widespread in the late 1970s into the 1980s and several researchers have called for attention to be reignited to determine what lessons can be applied to the Great Recession and beyond. However, little attention is paid to the influence of cutbacks on employees. How do layoffs impact public personnel? Using nationally representative employment data, this study examines sector differences in job loss, advance notice, job mobility, and sector switching. In addition to distinctions across job sectors, differences within the government sector across federal, state, and local employees are explored. Findings raise several questions for research and practice regarding the ability to recover staff in a timely manner, the diversity of the organization, and the capacity to cope with future crises.