Bipartisan pair of former governors: Training, not layoffs, will boost economy

A bipartisan pair of two former governors on Thursday called for employers to embrace job training programs instead of layoffs in an op-ed urging business owners to avoid the worst outcomes of an economic recession brought on by the coronavirus.

Former Florida Gov. Jeb Bush (R) and former Virginia Gov. Terry McAuliffe (D) wrote in USA Today that some layoffs being pursued by companies to avoid financial ruin brought on by the pandemic may be “unnecessary,” and warned that companies should instead consider paid or unpaid retraining periods for employees that would otherwise be affected.

“There is evidence that companies underestimate how devastating layoffs are in the medium and long term — not only to workers and the economy, but also to their families and local communities. These layoffs may ultimately be unnecessary, and are certainly a missed opportunity to develop a competitive advantage in the future of work,” the two wrote.

“Companies traditionally manage their workforce with a binary on/off switch: Fire workers now, hire others later. Today, we should look to a different tactic: Train and retain employees; and where companies must reduce payroll costs, do so while investing in their employees by using learning leaves. This transforms a traditional furlough into the chance to learn new skills,” they continued.

Their op-ed comes as more than 40 million Americans have filed jobless claims in the past 10 weeks, a staggering number unheard of since the Labor Department began tracking such figures.

Experts estimate that many businesses will be unable to reopen after coronavirus restrictions are eased due to financial woes, while larger companies such as Boeing continue to announce layoffs for thousands of employees.

Around 2.1 million more jobless claims were filed this week, the Labor Department said Thursday, while the U.S. surpassed 100,000 deaths from the COVID-19 pandemic on Wednesday.