Job Displacement - Meaning & Definition

Published by MBA Skool Team, Last Updated: June 09, 2012

What is Job Displacement?

Job displacement occurs when an employee who has an established working history is separated from the job or the job position is eliminated leaving the individual unemployed from that position. An individual who has been removed from one position and hired into another position by the same employer is also called as a displaced employee. An important condition of job displacement is that the job loss from that position must be permanent and not temporary.

This can occur due to the organization being shut down, or a mass layoff, or a major organizational restructuring leading to creation of new positions and removing the previous ones, etc.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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