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Excess workers are being put to work and that will begin to put upward pressure on prices.
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You get more output with fewer workers, and the excess workers are available for the new things.
FORBES: Jobs Jobs Jobs - Trade Trade Trade
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In January he launched Ford's latest turnaround effort, called the "Way Forward, " which seeks to restore North American profits by 2008 by reducing material costs, shedding excess workers and factories, and sharpening the focus of the company's Ford, Lincoln and Mercury brands.
FORBES: Magazine Article
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Ford, limping through a turnaround effort, needs to close factories and shed excess hourly workers.
FORBES: Magazine Article
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The excess supply of workers and products that ought to be holding back prices and wages is not as ample as we thought.
FORBES: In the Long Run it's All Microeconomics
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Mr Greider chooses a global-crisis scenario, arguing among other things that the world is suffering from a shortage of consumption (an excess of saving) because workers in developing countries earn less than their productivity would indicate.
ECONOMIST: Sense, nonsense and the global economy
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As long as the unemployment rate is high, there's a lot of excess slack, a lot of workers around, and that keeps wages from rising.
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Firms with excess capacity might not want to invest more and workers could simply save any tax cut.
ECONOMIST: Interest rates
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Every change on the factory floor that allows workers to adapt to sudden shifts in demand reduces the excess capacity of people and plant space Dell must maintain to get products out on time.
FORBES: Magazine Article