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Layoffs

Temporary Layoffs During the COVID-19 Recession

Something that distinguishes the COVID-19 recession from the Great Recession is that a lot of the current job losses are temporary layoffs. Which was not the case during the Great Recession. The current unemployed workers expect to end up back at their former employer when things get better. But, some of these temporary layoffs might turn into permanent ones.

According to Chicago Booth’s Matthew J. Notowidigdo, laid-off workers have been returning to work at a very high rate, thereby avoiding the damaging effects of long-term unemployment that plagued so many during the last recession.

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