The phenomenon of underutilization of labor during a recession is called
A) labor stockpiling.
B) investing in human capital.
C) labor force stabilization.
D) labor hoarding.

Question

Quizplus · Accepted Answer

Labor hoarding refers to the practice of firms retaining excess workers during a recession rather than laying them off immediately. This phenomenon is characterized by relatively slow rates of layoffs and downsizing, resulting in a situation where the labor market experiences a high rate of underutilization of labor. A labor hoarder is therefore a firm that retains its workforce despite a lack of demand for its products or services.

The Phenomenon of Underutilization of Labor During a Recession Is