You would think that layoffs would go up as the economy slows. That isn't the case. According to the Bureau of Labor Statistics, the national average of layoffs hasn't changed much since the beginning of the year.

There is a phenomenon called "laborhoarding" according to economists.

What's the matter with labor? Most of us have heard of house-hoarding, but how does one do it and why?

During an economic downturn, companies tend to hang on to their employees.

It's one of the reasons unemployment is down for the fifth week in a row in the US They are being kept away from the sun.

@tacobell Replying to @tacobell ♬ original sound - tacobell

The reports will tell us a lot about the current economy.

An Economic Decision

The reason companies are keeping employees in bad times is not because they are good people. When the economy improves, it costs more to hire and train new workers.

Sam Ro wrote in his newsletter that some employers are seeing business slow and would rather just hang on to employees, even if it comes with carrying costs.

Some analysts think that the word "hoarding" is a good thing.

The CEO and co-founder of a management platform for frontline employees says that labor will be a key driver of reversing the recession. By keeping workers on the payroll, businesses are doing their part to keep income levels afloat, which in turn leads to more spending by still-employed consumers, which in turn leads to more revenue for businesses.

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