The ‘Reduction Driven Recession’ Theory

‘Downsizing’ shouldn't be the answer to economic recession. Because, huge lay-offs means fall in employment and purchasing power adding to the recession impact at a macro-level. Added unemployment scenario will further intensify both, size and span of economic depression. This means, reduction-driven unemployment will further deepen the crisis and extends the recession term. Hence, recession impact mitigation measures should be carefully planned so that employees don’t become jobless. Organizations should take a people-friendly route.