Furloughs: Unemployment by another name

Companies and states are starting to furlough employees to save money. Some furloughs last weeks; others last for months. But, in effect, the people on furlough are like a shadow group of unemployed workers, based on the impact that they have on the economy.

For the most part, workers who are furloughed are unlikely to be consumers and fears that they may not be re-employed can cut their willingness to pay essential bills like mortgages. They act, in essence, like people with part-time jobs or no jobs at all.