e lay offs differed from those in the past in that they were often accompanied by plant shutdowns, another way in which the manufacturer could save money. When plants are closed, the company not only saves the labor costs, but also the cost of operating the plant and maintaining the equipment. Sometimes the equipment is sold, which enables the company to recoup some of its investment. When plants close, workers cannot be called back at a later time.
The recession that began in the late 1980s was characterized by a new group of worker being affected: the white collar worker. The American economy had shifted away from manufacturing and toward the service industry, and so employers who were affected by the economic downturn were those that employed college-educated workers. Middle management also suffered job losses during this recession as employers kept those workers who contributed directly to sales. During this recession, the unemployment figures shifted away from laborers and toward service providers (Madigan, September 20, 1993, p. 38).
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