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In a recession firms shed labour and mothball capital.
Firms shed labour, returning unemployment to u*, but with a higher inflation rate, p1.
These new pressures will encourage firms to cut costs, shed labour and use assets more efficiently.
In the US, corporate profits have risen sharply, with business taking advantage of the slump to shed labour, cut hours and halt pay increases.
Prospects are bright in emerging economies, especially India, where the percentage of employers planning to hire more staff exceeds that of those intending to shed labour by 43 points.
Desperate to shed Labour's reputation as a party that overspent wildly in the run-up to the Great Recession, Miliband and his sidekick, Ed Balls, Labour's economics spokesman, are promising to cut the budget deficit every year and to balance the books in the next Parliament, even if it means raising taxes to do so.
Similar(53)
Employers' bodies fume at the difficulty of shedding labour.
Private industry, too, is shedding labour, as it adapts to a more open economy.
Now, small companies are desperately shedding labour themselves, as record numbers of them go bust.None of this is doing much good to Japan's sick economy.
Spurred on by the threat of foreign competition, they have discovered how to make internationally competitive goods by shedding labour, designing new products and improving management.
Linklaters, one of the City's biggest law practices, is shedding labour in much the same way as the investment banks.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com