A dislocated worker is someone who is no longer employed due to no fault of her own. There are several different causes to becoming a dislocated worker — all related to being laid off by an employer and most commonly due to a declining economy. Dislocated workers could also be self employed but no longer being able to sustain a self employment due to similar reasons.
Dislocation occurs when an employer is no longer able to keep on an employee. This can happen when the economy is not doing as well as it previously was. For example, after the 2008 housing crisis, the economic recession had an astonishing impact on American companies and their employees. Over 2.6 million people in the United States lost their jobs and became dislocated workers during this time.
Technological innovations can also create dislocation. Fast food workers and retail employees may become unemployed due to their positions being filled by computer ordering systems or self checkout lines. When this occurs, a person then becomes a dislocated worker.
Dislocation may occur after mergers, when the duplication of certain positions leads to one of the employees being let go. Or, after new competition moves to the area. If a similar company offering the same services for less money becomes more popular, the original company may be forced to induce mass layoffs or close altogether.
If a person is self-employed, they may experience dislocation when their business is no longer feasible. Self employment can include farmers, ranchers or fishermen, as well as freelance employees like freelance writers, freelance graphic designers and more. If a full-time freelance employee is no longer finding the work needed to support herself, she may become a dislocated worker.
Dislocation can also occur to homemakers. A displaced homemaker is a person who dedicated her time to taking care of her family and was the dependent of another family member with a paid income but is no longer being supported by that person. Due to divorce or death or the loss of the other person’s employment, she becomes a displaced homemaker.
And the spouse of an armed forces member can also be a dislocated worker. If the active duty member is transferred to another duty station and the spouse loses her job because of the relocation, she has become a dislocated worker.
The government offers a variety of programs to help those who are now dislocated workers.
Students will be asked if either of their parent is a dislocated worker while filling out their FAFSA. Students whose parents are considered dislocated workers may be eligible for zero Expected Family Contribution.
Expected Family Contribution is the measure of one’s family to pay for their education. The lower your EFC is, the less you will be expected to pay for college.
When calculating EFC, the government takes various factors into consideration. Factors include the total household income, the number of people in the family, the number of people currently attending school, and more.
Having a parent be considered a dislocated worker lowers one’s EFC score and could even take it to zero depending on the other factors.
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