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Will Chapter 11 Filings Follow the Rise of Permanent Job Losses?

The growth in permanent job losses has followed a similar trend to the growth in the number of companies filing for chapter 11 bankruptcy. This is rather intuitive, since companies transition temporary job losses to permanent job losses as financial distress reaches its peak and a bankruptcy filing becomes inevitable. If the two data sets continue to follow each other, as has been the case historically, then we should begin to see a significant uptick in filings.

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