No employer likes to make employees redundant, but when recession bites and demand for the product is falling, sales revenue may be insufficient to cover wage bills. It may quickly become clear that savings have to be made by cutting the number of employees. One of the easiest ways to do this is simply to stop recruiting. After a time, some employees will retire or leave to go to another job. The workforce will gradually shrink without the need for any difficult decisions over redundancy.This is known as natural wastage.
This sounds great, but means that when school or college leavers are looking for work, job opportunities are few and far between. Applicants may have to seek out many different openings before they finally land a job. The least well-qualified applicants may be out of work for some time.
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