Alternatives to Layoffs in Recession – Why Aren’t They Used?

December 18, 2008 by  
Filed under Economics

The news yesterday that Chrysler was shutting down all of its U.S. factories for 30 days got me thinking about a larger question:  Why is it that in a recessionary economy, employers primarily use layoffs to cut labor costs?  Why don’t they look for alternatives?

By alternatives, I am referring to labor cost-cutting measures that allow employees to keep their jobs while lowering their costs of employment. Read more