Work share programs that have been implemented in 17 states have been successful in limiting the burden born by employers who need to cut spending that unfortunately results in layoffs and the burden taken by states coffers to help those unemployed.* From Stateline:
Here’s how it works. When a business enters a slump and needs to cut payroll, it can seek state approval for a plan to reduce employees’ hours instead of cutting jobs. For example, a 20 percent reduction in the workforce could translate to a 20 percent reduction in hours, or a four-day workweek. To help employees stay afloat, the state would pay workers about half of their lost wages through the federal-state unemployment insurance program, which temporarily provides laid-off workers with a portion of their paychecks.
Maybe for the next recession, whenever that may be, all states should be ready to work with employers when it comes time to look towards job cuts. Company’s win, worker’s win, and the state wins; a Pareto efficient outcome. Doesn’t get any better than that.
*I forgot to mention those that benefit the most from this are those who don’t have to go unemployed. They are able to retain a higher amount of job security (at the unfortunate loss of wages) and continue to retain job skills that could save themselves and companies in the long-run money.