May 12, 2020 - Economy

The temporary pandemic layoffs that could become permanent

Erica Pandey

Briefcases with R.I.P. on them — Illustration: Aïda Amer/Axios

Restaurant and retail workers who can't do their jobs remotely were the first to lose their incomes to the pandemic — and, for many of them, those temporary hardships will turn into lasting ones.

By the numbers: Economists at the University of Chicago project that 42% of the layoffs from the pandemic will be permanent.

A huge number of retailers and restaurants — especially boutiques and smaller chains — have already closed for good, unable to weather the crisis. And more will follow before the pandemic is over.
Even bigger chains like Macy's and Gap might not bring back all of the hundreds of thousands of workers they let go in March, experts tell Axios.
And the process of recalling furloughed workers will be gradual. As states start to reopen, stores and eateries will likely operate at lower capacities and only hire back a portion of staff.

The bottom line: The silver lining in last week's jobs report — the worst in U.S. history, with 20.5 million jobs shed in April — was that around 18 million of those lost jobs were just temporary layoffs. But the outlook could turn worse in the coming weeks and months.

Add Axios on Google

The temporary pandemic layoffs that could become permanent

What to read next