Japan considering extending special employment subsidy

Because then people are disconnected from their jobs, 

That can be a good thing. When Britain had a massive economic downturn in the 80s, millions went "on the dole," receiving assistance directly.

Many young people used their time and freedom to upgrade their working skills or train and certify for new ones. The govt offered job training incentive programs. Hence, the UK economy boomed in the 90s, even attracting job-seeking young people from around the world.

The J govt's current policy risks propping up flawed failing companies.

Some 2.36 million people were furloughed as of June, up 0.9 million from a year earlier

Should this read "one month earlier"? Why would 1.5 million people be furloughed in 2019?

to deal with an increase in the fiscal burden

What exactly is the "burden" when you can print the money easily, that half the "burden" is owned by the central bank, which is able to purchase even more of that "burden" and can even cancel the obligations it owns...if it chooses.

the subsidy could trigger a spike in job losses

Short memories. The same people were frantically complaining about a chronic labor short a few months ago. A "spike" will not likely lead to an unacceptable jobless rate.

Why not just pay unemployed and furloughed workers directly? By funneling it through employers, you just know that some of that money isn't trickling down to the employees.

Part of the reason America’s response is so failed is that they gave everyone unemployment, instead of supplementing companies and requiring them to keep their employees. Essentially government backed salary until we deal with the pandemic.

Incorrect. The US gov't has given billion$ to huge corporations specifically to retain employees. They laid them off anyway, as they always do whenever they promise not to lay anybody off if they get money and/or tax breaks for retention.

Unfortunately, most small businesses that were supposed to be the intended recipients of these funds, never got any.

Because then people are disconnected from their jobs, and it’s harder to re-employ them. Particularly if their unemployment is more comfortable than working.

A. That's not why people are remaining unemployed. It's the mass layoffs and lack of jobs.

B. If Unemployment benefits pay more than their previous jobs, their previous jobs sucked, and their employers were exploiting them. But, a higher minimum wage is a whole other issue that needs to be addressed in 2021.

Why not just pay unemployed and furloughed workers directly?

Because then people are disconnected from their jobs, and it’s harder to re-employ them. Particularly if their unemployment is more comfortable than working. If they remain as employees, the companies can get them back to work easily.

Part of the reason America’s response is so failed is that they gave everyone unemployment, instead of supplementing companies and requiring them to keep their employees. Essentially government backed salary until we deal with the pandemic.