Many Employers Recall Their Laid-off Workers
This report from The Economist, finds Authors Shigeru Fujita and Giuseppe Moscarini using data from the Survey of Income and Programme Participation, which covers the American labour force, from 1990 to 2011. And they show that employers regularly recall workers whom they had previously let go. Over 40% of all workers moving into unemployment regain employment with their old employer (yes, you read that right). One might question that figure: after all, employers may have agreed to lay off workers for a defined period before taking them back. Yet, even for workers considered to be “permanently separated”—that is, people with no expectation of a recall—over a fifth return to their old haunt.
