Productivity changes in response to a change in demand can be a residual, to the extent firms cannot or choose not to adjust total hours commensurate with changes in demand--perhaps reflecting labour hoarding
At least UK unemployment - officially at least - hasn't gone as high as had been feared by some, owing to labour hoarding
by firms, falling real wages and part-time working.
This is often described in terms of labour hoarding
, which implies an irrational response by employers.
The particular labour market stance of the exporting manufacturers can explain why firms absorbed the shock more intensely by labour hoarding
than could be predicted considering the experience from past recessions (M611er, 2010).
Employment in both rural and urban areas grew despite the contraction of output in 2009, reflecting large scale labour hoarding
facilitated by nominal wage cuts.
This labour hoarding
means companies will be able to respond to increases in demand without hiring new employees.
On Bangor Street, one Labour hoarding
and one Lib Dem hoarding hinted at an election battle but they were obscured by a host of For Sale signs.
5 per cent today because of high underemployment in the agricultural sector and an end to the practice of keeping redundant workers in the public sector, known as labour hoarding
, facilitated by intensive use of reduced working hour schemes, and targeted measures have supported employment.
We have therefore tested to see if: (a) what looks like labour hoarding
is actually firms keeping workers who are employed in creating intangible assets; and (b) the current slowdown in TFP growth is due to the spillover effects of the past slowdown in R&D and telecoms equipment investment.
There was labour hoarding
, that is, a large fall in labour productivity.
Dr John Philpott, director of The Jobs Economist, said: "The observation that what might be called the UK's normal redundancy rate fell well before the recession suggests that the lower-thanexpected level of redundancies in recent years, which is often partly attributed to more co-operative employment relations and pay restraint triggered by the financial crisis, labour hoarding
by employers, or zombie companies kept alive by very low interest rates, is in fact symptomatic of a longer-term structural change in the economic and business climate which has resulted in a lower propensity to make staff redundant.