Final answer:
Added workers are essential to grasp labor market dynamics during economic downturns and recoveries. Industry-specific workers face long unemployment periods upon layoffs, and firms often hesitate to rapidly rehire after a recession, relying on existing workers to avoid training costs.
Step-by-step explanation:
Added workers are important for understanding how the labor market reacts to recessions. During recessions, firms may lay off workers if they perceive a decrease in product or service demand. However, they run the risk of losing their trained workforce, which can be costly to replace once the economy recovers. Workers with industry-specific skills, like those of a welder in a steel factory, may face prolonged unemployment or have to settle for lower-paying jobs or retraining if laid off due to shifts in demand or international competition.
In the context of a recovering economy post-recession, firms may delay hiring new employees until they are confident about the recovery's sustainability, to avoid the expenses associated with recruitment and training. This cautious approach by firms, along with the contribution of women and immigrants to the workforce, highlights the complexities within the job market, which is influenced by factors such as outsourcing, automation, and socioeconomic policies like welfare and Social Security.