Some employers are trying to keep ties to laid-off staffers

Some employers are trying to keep ties to laid-off staffers

SeattlePI.com

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As millions of job cuts tear through the U.S. economy, a faint glimmer of light has emerged: Some employers are trying to maintain ties to the staffers they're letting go so they can more quickly rehire them once the viral outbreak has passed.

Several large retail chains are furloughing workers — a form of temporary job cut that often maintains health insurance — rather than laying them off. And many small businesses, too, are keeping in touch with workers they've had to let go.

“Anyone who's trying to lay off workers is already thinking about how they can bring them back," said Jania Bailey, CEO of FranNet, a consultancy that works with franchise companies.

One of them is Tracy True, who said she's keeping in touch at least once a week with the 10 furloughed staffers of her clothing store in Vestavia, Alabama.

“As soon as we're given the all clear," True says, “we'll be back.”

How long millions of other laid-off employees will remain without work will help determine the depth and duration of a U.S. recession that's almost surely begun and is destined to worsen in coming months.

Workers on temporary layoff typically spend less time unemployed compared with those who permanently lose work and must transition to new industries and acquire new skills. For the economy to recover relatively fast, many workers would need to return quickly to their former jobs.

In Europe, some countries are directing a portion of their aid to help companies avoid layoffs by putting staffers on either reduced hours or paid leave. Governments will typically pay a chunk of the salaries of employees while they're not working.

Germany fared particularly well with a short-work program during the 2009 recession. It supported 1.5 million workers, thereby limiting unemployment. This...

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