In the aftermath of a recession, firms are more likely to add overtime shifts than hire permanent workers when the demand for their product increases.

Question

Quizplus · Accepted Answer

This is because firms are cautious about adding permanent workers after a recession until they are confident that the increased demand is sustained for a longer period of time. Overtime shifts provide more flexibility and have lower cost implications in the short-term.

In the Aftermath of a Recession, Firms Are More Likely