Final answer:
Layoffs can be temporary, as companies may lay off workers due to economic downturns or decreased demand with the intention of rehiring them later. The growth of the temporary worker industry also supports this flexibility, allowing workers to take on temporary roles while searching for permanent positions.
Step-by-step explanation:
The statement is true: layoffs are not always permanent; they can indeed be temporary. Layoffs can occur for various reasons, including economic downturns or seasonal declines in demand. Companies may lay off workers with the intention of rehiring them when the business climate improves. For example, at the beginning of a recession, a company might lay off employees due to weak demand, with the hope that when demand picks up again, these employees can be brought back on board without the firm incurring additional costs for hiring and training new workers.
Moreover, the rise of the temporary worker industry has allowed for more flexibility in the workforce. Temporary work can serve as a buffer for workers who are in between jobs, providing them with opportunities while they search for permanent positions. This has the added benefit of reducing both the natural rate and frictional unemployment. A construction worker might take a temporary job in a completely different industry, such as a fast food restaurant, while waiting for reemployment in their specialized field.