Labor hoarding occurs when
A)firms keep good workers so other firms can't hire them.
B)the unemployment rate exceeds the natural rate of unemployment.
C)involuntary unemployment exceeds voluntary unemployment.
D)because of hiring and firing costs, firms retain workers in a recession that they would otherwise lay off.

Question

Quizplus · Accepted Answer

Labor hoarding typically occurs during a recession or economic downturn when firms are reluctant to lay off workers due to the costs associated with hiring and firing. This can result in higher levels of employment than the demand for labor requires, creating an involuntary unemployment situation.

Labor Hoarding Occurs When