1.0Liberty Street Economicshttps://libertystreeteconomics.newyorkfed.orgblog authorhttps://libertystreeteconomics.newyorkfed.org/author/blog-author/Temporary Layoffs during the Great Recession - Liberty Street Economicsrich600338<blockquote class="wp-embedded-content" data-secret="mIdFKDfQ2w"><a href="https://libertystreeteconomics.newyorkfed.org/2011/04/temporary-layoffs-during-the-great-recession/">Temporary Layoffs during the Great Recession</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://libertystreeteconomics.newyorkfed.org/2011/04/temporary-layoffs-during-the-great-recession/embed/#?secret=mIdFKDfQ2w" width="600" height="338" title="“Temporary Layoffs during the Great Recession” — Liberty Street Economics" data-secret="mIdFKDfQ2w" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script>
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In this post, I show that despite the depth of the Great Recession, U.S. employers did not use temporary layoffs much to cut costs. Just as they did during the previous two recessions, when firms laid workers off, they usually severed ties completely. This prevalence of permanent layoffs during the recession could slow the employment rebound over the coming months. It also raises questions about why the behavior of employers during recessions has changed.https://libertystreeteconomics.newyorkfed.org/wp-content/uploads/sites/2/2011/04/6a01348793456c970c0147e3c10f94970b-450wi.jpg