Opinion: In a recession, companies should not see layoffs as the cure-all solution

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 92%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

In a recession, companies should not see layoffs as the cure-all solution GlobeBusiness

Linda Nazareth is a senior fellow at the Macdonald-Laurier Institute. Her bookLet’s not say for sure that there is a recession brewing. All those indicators – that inverted yield curve, those depressed purchasing managers, the fancy models signalling dismal things – well maybe they are just wrong. And who knows, maybe you can take a sledge hammer to free trade amongst countries and go on to have your economy thrive.

Once layoffs start, they tend to result in a plunge in morale both within the companies where they occur and more broadly across the economy. As people fear that their own jobs are in peril, spending gets even slower and escaping recession even more difficult, meaning that from a macroeconomic perspective, they should certainly be avoided if possible.

Layoffs are actually quite expensive to companies anyway. After all, every employee represents an investment in hiring costs and training, which becomes money wasted once that worker is laid off, and then spent again when hiring starts again. Add in the cost of severance and the costs start to mount.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 5. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Billboard company not happy with group responsible for Bernier adsRandy Otto, the president of Pattison Outdoor Advertising, said his company agreed to run the ads on the condition that True North Strong & Free Advertising Corp. identify itself and let people viewing the billboards know how to get in touch FreeSpeech cdnpoli What part of the word MASS do they not like? The G&M still doing fee advertising for PPC. That Mad Max has made a fool out of the media. They gave him exactly what he wanted.
Källa: globeandmail - 🏆 5. / 92 Läs mer »

Premarket: Stocks slip as bond markets ring recession alarmsMSCI world equity index falls 0.1 per cent; sterling down, U.K. stocks up on BBC parliament suspension report
Källa: globeandmail - 🏆 5. / 92 Läs mer »