This paper explores the effect of displacement on the dynamics of employment that older workers experience. We set a hazard model for getting back to work after displacement and another for losing job after reemployment. For each subgroup divided by sex, we then estimate the effect of displacement on employment transition using a random probit model. The results show that older workers who have experienced displacement are more likely to return to work. Moreover, older workers who were displaced in their previous jobs are more likely to lose their jobs after reemployment. These results imply that displacement in their previous jobs makes older workers delay their retirement and continue to work. However, job security in the post displacement job is likely to decrease. As a result, reemployed older workers have a high possibility to lose their jobs.