Research indicates that the American practice of paying unemployment only to those working zero hours can encourage the overuse of temporary layoffs.

Question

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Research has shown that when unemployment benefits are only paid to those who work zero hours, it can create an incentive for employers to frequently use temporary layoffs instead of finding other ways to avoid permanent job cuts. This can lead to higher unemployment rates and longer spells of joblessness for workers.

Research Indicates That the American Practice of Paying Unemployment Only