We are in the midst of a slow growing economy in the aftermath of a severe reces

Question

We are in the midst of a slow growing economy in the aftermath of a severe recession. During the economic downturn many businesses laid off workers very quickly once they forecast their sales were dropping. What are the economic reasons behind cutting employees very quickly in a slowing economy? Why are companies slow to rehire workers even though the stock market is quite high? In other words, what are some of the impediments to hiring and how are businesses getting the work done with fewer employees?

Explanation / Answer

The economic reasons behind cutting employees very quickly in a slowing economy is that there is more expenditure incured by the company. The spendings is reduced by cutting employees from the company. It is going to avoid spendings in a slow economy based company. The companies slow to rehire workers although stock market is quite high because the company takes time to maintain its finance. The company takes time to do spendings in a large amount which takes place on salaries of employees. The company is making their employees do over time at the time of recession or inflation. It happens to increase the output with fewer employees.

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