As a result, labor input increases. Moreover, because a recession means that there is less work, those who fortunately have had a job will try hard not to lose it. Amid a lack of jobs, the so-called black firms will take advantage of their employees that do not want to lose the job they managed to get, subjecting them to harsh working conditions.
12 Meanwhile, large firms, because they cannot easily lay off employees, will be saddled with a lot of dissatisfied employees with an uncertain career and future. Under these circumstances, profits and productivity are unlikely to grow. When the economy expands, low-productivity work tends to be reduced.