Many people who were fired this spring were expected to return to their jobs very soon. For many, it is now becoming increasingly clear that this is a wishful thinking.
While states encourage the return to normal before the Kovid-19s, restaurants, factories and other businesses say they will not open or do so with reduced staffing, when most allow. Federal Reserve Chairman Jerome Powellhaus warned the U.S. economy would take more than a year to recover.
The closures were sudden and rapid. In February, the unemployment rate hit a 50-year low of 3.5%, and many employers were concerned that it could attract workers. Weeks later, the biggest mass layoffs since the recession have taken place.
The signature feature of this crisis is the blizzard of its chaos. States and employers facing uncertainties of the new disease have taken the placeholder action they deemed temporary. Government programs encourage employers to keep workers on their payroll. Now, by some estimates, of the more than 21 million workers laid off in March and April, only half will be able to return to their old jobs.
It took a while for the mood to sink into the new landscape.
Lockdowns were initially short-lived. Although they expand, most companies prefer furry workers rather than permanently cutting relationships. Unemployed workers usually do not feel very enthusiastic about getting their jobs back. But the Labor Department said that in April, 88% of the unemployed were temporarily quoted because of job losses, meaning they would return to the same job within six months.
In normal times, most laid off workers do not expect to return to the same job. With businesses suddenly shutting down this spring, most of them have only seen their job losses as temporary, and now the hopes are up.
April’s reading, which has been very promising since records began in 1967, indicates that many have quit their jobs with the promise that they will return.
Since then, many national retailers have filed for bankruptcy protection. JC Penny Co, which closed its stores on a temporary basis in March, said it would permanently close 240 locations, or about 30%, on Monday. Pier 1 Imports Inc. The plan was to reopen some stores by June 1, instead shutting down good stores. Goodyear Tire & Rubber Co. After the recent suspension of the Alabama plant, and other U.S. operations in March.
Permanent layoffs will result in more factories as consumer spending decreases. Airlines have warned employees this fall could be slowed, with signs suggesting a strong recovery may take years. And in communities across the country, restaurants and other small businesses are closing shop for good.