Workers and Businesses Affected by Temporary Layoffs

Temporary layoff (the firing and later rehiring of workers by the same employer after a spell of unemployment) is found in all spheres of the economy. Companies use this flexibilisation strategy not just to counterbalance the boom and boost cycle but also to adjust to internal factors of relevance for their human resources policy. Temporary layoff is the strategy of choice for small-scale operations characterised by high turnover rates, a low ratio of women employees, a higher average age of their staff, a greater share of blue-collar workers and a medium wage level. Accordingly, temporary layoff is used not just to cushion sector-specific seasonal variations but also to compensate for business-cycle dependent changes in demand for employees. Males, persons of medium to higher age and persons from traditional guestworker countries are among those most strongly affected by temporary layoffs.