The current prevalence of part-time work and short workweeks may slow job creation early in the recovery period, as employers may prefer to convert workers from part-time to full-time status and to add overtime work before turning to new hires. In addition, difficulties in obtaining credit could hinder the expansion of small and medium-sized businesses and prevent the formation of new businesses.
Because smaller businesses account for a significant portion of net employment gains during recoveries, limited credit could hinder job  8  Labor economists have documented these points. See, for example, David T. Ellwood (1982), "Teenage Unemployment: Permanent Scars or Temporary Blemishes?" in Richard B. Freeman and David A.