Final answer:
The term describing a one-time organizational change in employment is 'restructuring.' Firms may opt to retain workers or use overtime during economic downturns to avoid the costs of rehiring. Labor laws and strategies for employee retention play significant roles in these decisions, while frictional unemployment reflects the transitional period between jobs.
Step-by-step explanation:
The term that suggests a one-time change in the organization and the number of people employed is restructuring. When firms experience drops in demand, especially at the outset of a recession, they face the decision of whether to lay off workers or wait to see if the drop in demand is temporary. In some cases, to avoid the costs and risks associated with firing and then potentially rehiring, firms may opt for alternatives such as overtime work for the current staff until they are certain that the recession has ended.
However, labor laws, such as those in France, can influence this decision significantly. Laws that impose notable costs on businesses for laying off employees can deter firms from hiring in the first place, potentially affecting the natural rate of unemployment. Furthermore, employee retention strategies and hiring practices are critical for firms to manage their workforce size effectively without resorting to frequent firings or hirings that may destabilize the organization.
It is crucial to understand that even when job losses occur, the transition to new jobs is not instantaneous. This creates a scenario of frictional unemployment, where there is a lag between losing a job and finding new employment, as people may move, retrain, or seek jobs that better match their long-term career goals.