The study adds on to the existing literature on labour hoarding
by estimating a dynamic labour demand equation for two industries -manufacturing and financial services in Malta.
Labour Markets, Labour Hoarding
, and Cyclical Productivity
Banks and life insurers said an increase in "non-productive" activities, such as regulatory compliance, was the most important explanation of this trend, whereas securities traders blamed "labour hoarding
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
. Productivity changes may also be intentional if, for example, competitive pressures create incentives to raise productivity and lower production costs.
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.
Massive labour hoarding
was achieved through adjustments both at the working hours and at the labour productivity margin.
The fall in sterling helped push up inflation, but "labour hoarding
" also played a part.
"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.
Initially, most job losses affected workers on easy-to-terminate temporary contracts, while the government-sponsored reduced working time benefit scheme facilitated labour hoarding
. As private sector vacancies fell sharply throughout the year, the labour market situation deteriorated.
"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.