Labor Hoarding

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Labor Hoarding

The practice in which a company does not lay off employees when it otherwise would (as during a recession). Labor hoarding is high risk as it reduces a company's profitability during a difficult time, but it guarantees employee talent will be available to that company (and, just as importantly, not to its competitors) when growth resumes.
References in periodicals archive ?
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.
6% in August and is projected to rise until early 2011 as labour demand remains weak and labour hoarding is scaled back.
This labour hoarding means companies will be able to respond to increases in demand without hiring new employees.
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.
The second variation incorporates the simple labour hoarding model by Burnside et al.
It seems reasonable to assume that extra output is generated through more intensive use of existing inputs and thus to interpret this category as indicating adjustments in labour hoarding, whereby firms alter output simply by deploying workers who were previously inactive, or engaged in non-productive activities (Fay and Medoff, 1985).
Labour hoarding, facilitated by intensive use of reduced working hour schemes, and targeted measures have supported employment.