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Goldman Says Almost a Quarter of Temporary Layoffs in U.S. to Be Permanent

  • Joblessness to linger well into 2021 for many, economist says
  • Rehiring prospects for temporarily laid off worsened in July
Goldman Sachs Headquarters Ahead Of Earnings Figures
Photographer: Jeenah Moon/Bloomberg

The rehiring of temporarily laid-off workers will continue to bolster the U.S. labor market’s recovery in the months ahead, but Goldman Sachs Group Inc. expects almost a quarter of those layoffs to become permanent.

In the early months of the pandemic, employers shed more than 22 million people from their payrolls. The staggering figure had a small silver lining: the majority of those layoffs were billed as temporary. More than 18 million people were classified as temporarily unemployed in April, the most on record.