Following the impact of the ongoing COVID-19 pandemic, nearly a quarter (around 4.5 million) of the over 18 million temporarily layoffs reported as of April, are expected to become permanent, according to the latest projection by Goldman Sachs.
Nearly two million of those temporarily laid off could potentially be jobless well into 2021, Goldman Sachs predicted, according to Bloomberg News.
While the transition rate from temporary to permanent lay-offs has been historically low, “rehiring prospects for temporarily laid-off workers started to deteriorate in July,” and the figure was reported to have nearly doubled from June to July, Joseph Briggs, an economist at Goldman Sachs, confirmed in a research note Friday.
“Overall, these patterns suggest that temporarily laid-off workers will boost the labor market recovery for the remainder of 2020, but will increasingly transition to permanent unemployment as time separated from their prior job increases,” he said. (Read more from “Roughly 4 Million to Remain Unemployed Into 2022” HERE)