Australia has a high rate of firing workers when companies downsize compared with many other developed nations, a new report has found.

And while 70 per cent of workers who are laid off find a new job within a year, one in three will be paid less than they were in their old jobs. One in eight move into jobs that require a lower set of skills.

One in three Australian workers made redundant are paid less in their new jobs. Credit:Gabriele Charotte

The new report by economist Ann Vourc'h for the Organisation for Economic Co-operation and Development found that each year around 2.3 per cent of Australian workers lose their jobs as a result of corporate downsizing or closure.

Of those who lose their jobs, 70 per cent find a new one within a year and 80 per cent are re-employed within two years. But their new jobs are more likely to pay less than the ones they left behind.