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A recession is defined as a period of general economic decline; specifically, a decline in the country's GDP (Gross Domestic Product) for two or more consecutive quarters. During a recession, the country's liquidity is not at its best. Companies cannot easily raise fresh capital for expansion of their business. Maintaining customer base and profit would be the main aim for companies during a recession. During a recession the company would do either or both of the following: 1. reduce unnecessary expenditure (cost optimization) and/or 2. reduce unnecessary work force (resource optimization) As a result of these two steps, the number of employees in the company may come down. resulting in unemployment. Similarly, the company would not be in a position to expand its operations. Hence the number of fresh employment positions that would be created by the company would also take a hit. This would also cause unemployment.

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16y ago

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