Labor hoarding

Labor hoarding is the phenomenon of firms employing workers whom they do not need when the demand for their products is low, so that they will still have these workers when demand recovers.

Definition

According to Macroeconomics by Mankiw (7th edition),

Labor hoarding. The phenomenon of firms employing workers whom they do not need when the demand for their products is low, so that they will still have these workers when demand recovers.