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Furloughs are often a much better alternative to layoffs for both companies and employees. However, until Covid-19, they were infrequently used in the U.S. During the Great Recession only 0.5% of the U.S. workforce participated in furloughs, while one in five workers experienced a layoff. Today, in the most uncertain time any of us have ever known, many companies, including Tesla, GAP, Macy’s, and Marriott, are turning to furloughs, creating a road to return when there is once again work to do.
