Is Labor in Short Supply?Is skilled labor in the United States abundant? Or is there a shortage? The simple answer toboth of these questions is yes. Of course, simple answers don't adequately address theissue or begin to describe how both situations (a shortage and a surplus) can exist simulta-neously. In the sections that follow, we'll provide you with that explanation.Why Do Organizations Lay Off Workers?At one time in corporate America, organizations followed a relatively simple rule: In goodtimes you hire employees; in bad times, you fire them.62 Since the late 1980s that "rule" nolonger holds true, at least for most of the largest companies in the world. Throughout thepast decade, most Fortune 500 companies made significant cuts in their overall staff. Thousands of employees have been cut by organizations such as IBM, AT&T, Boeing, andSears. In fact, in the fourth quarter of 2006 alone, more than 255,000 jobs were cut in U.S.companies; nearly l million lost jobs in all of 2006.63 This downsizing phenomenon isalso going on outside the Uflited States.
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