Some of the previous years economy was down and recession was dominenton economies. So as the economy is related to employment and all otherflourishing activities. Due to the recession a number of peoples werefired from there jobs. So the number of obless peopls increasedcaausing increased umemplyement.As we kknow that umemployment means
“when people are without jobsand they have actively looked forworkwithin the past four weeks”
.Theunemployment rate is a measure of the prevalence of unemployment andit is calculated as a percentage by dividing the number of unemployedindividuals by all individuals currently in thelabour force.
Rationale of the Study
Many firms have come to enjoy positive effect downsizing broughtfor them. There have been many cases for instance “Among Koreanfirms, a representative success story related to the downsizingeffect comes from Samsung Electronics, which is one of the mostsuccessful companies in Korea” (Gyu-Chang Yu & Jong-Sung Park,2006).“Despite a few successful cases of downsizing, however, the realeffect of downsizing on a firm’s financial performance andemployee productivity is an empirical question. In fact, wecannot disregard hidden figures about the number of employees inmany cases”.(Gyu-Chang Yu & Jong-Sung Park, 2006).