The termination of 200 people’ employment by a serious on-line retailer represents a major workforce discount. Such an motion usually stems from numerous components, together with financial downturns, firm restructuring, performance-based evaluations, or shifts in strategic route. A selected occasion of this magnitude can influence each the affected workers and the broader financial panorama.
Workforce changes of this scale can provide insights into the general well being of particular industries and the broader financial system. They’ll replicate financial traits, technological developments, and evolving enterprise fashions. Understanding the context and rationale behind such selections is essential for analysts, traders, and job seekers alike. Inspecting these occasions traditionally can illuminate patterns and supply useful context for present occasions.
This occasion raises a number of vital questions for additional exploration. What are the particular causes cited for these terminations? How will this motion influence the companys operations and long-term objectives? What help is being supplied to the affected workers? And at last, what broader implications could be drawn for the business and the financial system as a complete?
1. Firm restructuring
Firm restructuring typically performs a major position in workforce reductions. When a company like Amazon restructures, it reevaluates its operational effectivity, market positioning, and useful resource allocation. This course of can result in eliminating roles, consolidating departments, or shifting strategic priorities, in the end leading to worker terminations.
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Effectivity enhancements
Restructuring typically goals to streamline operations and improve effectivity. This would possibly contain automating duties, merging departments, or outsourcing sure capabilities. Such modifications can result in redundancies, leading to job losses, even for high-performing workers. For instance, if Amazon decides to automate a warehousing course of, the roles beforehand held by handbook laborers is likely to be eradicated.
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Strategic realignment
Corporations might restructure to adapt to altering market situations or pursue new strategic instructions. This might contain exiting sure markets, investing in new applied sciences, or refocusing on core companies. Such shifts can necessitate workforce changes, as skillsets required for the brand new route might differ from current ones. If Amazon decides to prioritize a brand new product line, it might scale back funding in different areas, resulting in job cuts in these divisions.
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Value discount
Restructuring is usually a direct response to monetary pressures, aiming to cut back prices and enhance profitability. This may contain chopping bills throughout numerous departments, together with workforce discount. Layoffs could also be focused at particular areas deemed much less important to the corporate’s core operations. As an illustration, if Amazon experiences declining earnings in a selected division, it would scale back headcount to attenuate losses.
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Mergers and Acquisitions
Restructuring is a standard consequence of mergers and acquisitions. When firms merge, overlapping roles or departments could also be eradicated to keep away from redundancy and consolidate operations. This may end up in important job losses, notably in administrative or help capabilities. Equally, following an acquisition, the buying firm might restructure the acquired entity to align it with its personal strategic goals, doubtlessly resulting in job cuts.
Subsequently, analyzing workforce reductions by way of the lens of firm restructuring supplies useful insights into the underlying causes for such selections. Whereas job losses are undoubtedly tough for affected workers, restructuring typically goals to place the corporate for long-term success and sustainability. Additional evaluation into the particular areas impacted by the job cuts at Amazon can provide a extra nuanced understanding of the corporate’s present strategic priorities and future route.
2. Financial Downturn
Financial downturns typically necessitate cost-cutting measures for companies, together with workforce reductions. When shopper spending decreases and financial development slows, firms like Amazon might expertise lowered income and profitability. This may set off a cascade of reactions, together with hiring freezes, price range cuts, and in the end, layoffs. The termination of 200 workers could possibly be a direct consequence of such an financial downturn, reflecting an try and streamline operations, management bills, and preserve monetary stability in a difficult financial setting. That is notably true for firms closely reliant on shopper spending, as their revenues are instantly impacted by shopper confidence and buying energy.
A number of historic examples illustrate this relationship. Throughout the 2008 monetary disaster, many firms, together with main retailers, carried out important layoffs in response to declining gross sales and financial uncertainty. Equally, the financial slowdown attributable to the COVID-19 pandemic in 2020 led to widespread job losses throughout numerous sectors. Whereas some firms initially benefited from elevated demand for on-line companies, subsequent financial contractions and provide chain disruptions pressured many to re-evaluate their workforce dimension. Connecting workforce reductions to broader financial traits helps perceive the pressures confronted by companies in periods of financial instability.
Understanding the hyperlink between financial downturns and workforce reductions supplies useful insights for traders, policymakers, and job seekers. Recognizing these cyclical patterns may help traders make knowledgeable selections about their portfolios. Policymakers can develop methods to mitigate the detrimental impacts of financial downturns on employment. Job seekers can acquire a greater understanding of market dynamics and regulate their job search methods accordingly. The interaction between financial situations and employment ranges underscores the significance of sound financial insurance policies and resilient enterprise methods.
3. Efficiency Points
Efficiency points is usually a important consider employment terminations, notably inside massive organizations like Amazon. Whereas workforce reductions typically stem from broader financial or strategic issues, particular person efficiency evaluations play a vital position in figuring out workers who is probably not assembly firm expectations or contributing successfully to organizational objectives. Inspecting the position of efficiency points within the context of 200 worker terminations supplies insights into inside efficiency requirements, administration practices, and the general organizational tradition.
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Assembly Efficiency Metrics
Corporations typically set up key efficiency indicators (KPIs) to measure worker productiveness, effectivity, and contribution to organizational goals. Failure to persistently meet these pre-defined metrics can elevate considerations about an worker’s suitability for a selected position. As an illustration, in a sales-oriented position at Amazon, KPIs would possibly embrace gross sales targets, buyer satisfaction rankings, and conversion charges. Constantly falling wanting these targets might result in efficiency enchancment plans, and in the end, termination if efficiency doesn’t enhance.
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Talent Gaps and Adaptability
Speedy technological developments and evolving enterprise landscapes necessitate steady studying and adaptation. Workers who fail to amass new abilities or adapt to altering job necessities might discover themselves struggling to satisfy efficiency expectations. Inside a dynamic setting like Amazon, the flexibility to embrace new applied sciences and adapt to evolving buyer calls for is essential. Workers unable to maintain tempo with these modifications might face efficiency challenges, doubtlessly resulting in termination.
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Attendance and Reliability
Constant attendance and punctuality are basic expectations in most work environments. Frequent absences, tardiness, or unreliability can disrupt workflow, influence crew productiveness, and in the end result in disciplinary motion, together with termination. Whereas occasional absences on account of unexpected circumstances are comprehensible, a sample of unreliability can negatively influence crew efficiency and total organizational effectivity, making it a possible consider termination selections.
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Disciplinary Points and Conduct
Violations of firm insurance policies, together with disciplinary points associated to conduct, may contribute to termination selections. These points can vary from insubordination and unprofessional habits to violations of firm ethics or security laws. Sustaining a respectful and productive work setting is crucial for any group, and workers who persistently breach these requirements might face disciplinary motion, doubtlessly resulting in termination.
Analyzing the potential position of efficiency points within the termination of 200 workers supplies useful insights into Amazon’s inside efficiency administration processes and expectations. Whereas broader financial and strategic components might contribute to workforce reductions, understanding the importance of particular person efficiency supplies a extra nuanced perspective on the dynamics throughout the group. Additional investigation into the particular departments or roles affected by the terminations, together with the distribution of efficiency evaluations, can provide a deeper understanding of the state of affairs.
4. Strategic Shift
Strategic shifts inside organizations typically necessitate corresponding changes in workforce composition. When an organization like Amazon undergoes a strategic shift, it re-evaluates its core companies, goal markets, and long-term goals. This realignment can result in useful resource allocation modifications, impacting numerous departments and roles. Consequently, some positions might turn out to be redundant, whereas new talent units is likely to be required, leading to workforce reductions or restructuring. The termination of 200 workers could possibly be a direct consequence of such a strategic shift, reflecting a deliberate effort to align the workforce with the corporate’s evolving priorities.
Contemplate, for instance, a hypothetical situation the place Amazon decides to prioritize its cloud computing division (AWS) over its e-commerce retail operations. This strategic shift would probably result in elevated funding in AWS, accompanied by a corresponding discount in sources allotted to retail. This might manifest in numerous methods, similar to hiring extra cloud engineers and specialists whereas lowering employees in retail administration, customer support, or warehousing. Equally, if Amazon decides to broaden into a brand new market, similar to healthcare or monetary companies, it would require specialised experience not presently current throughout the group. This might result in focused hiring in these areas whereas concurrently lowering employees in much less prioritized divisions.
Understanding the connection between strategic shifts and workforce changes supplies useful context for decoding company selections. Analyzing the particular departments or roles affected by the 200 worker terminations can provide insights into Amazon’s evolving strategic priorities. If the terminations are concentrated inside particular divisions, it might sign a deliberate transfer away from these areas. Conversely, elevated hiring in different departments would possibly point out areas of strategic focus and future development. This evaluation permits for a extra knowledgeable understanding of the corporate’s long-term trajectory and potential market influence. It additionally highlights the significance of adaptability and steady studying for workers in right now’s dynamic enterprise setting.
5. Impacted Departments
Analyzing the particular departments affected by workforce reductions supplies essential insights into a company’s strategic priorities and operational changes. When an organization like Amazon reduces its workforce, the distribution of these reductions throughout totally different departments typically reveals underlying traits and motivations. Understanding which departments are most impacted can illuminate areas of strategic realignment, cost-cutting efforts, or shifts in operational focus. This evaluation gives a granular perspective on the broader implications of workforce changes, shifting past mixture numbers to disclose the focused nature of such selections.
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Expertise and Engineering
Reductions in expertise and engineering departments would possibly point out a shift in technological priorities, a slowdown in product growth, or elevated automation of engineering duties. For instance, if Amazon reduces its funding in a selected expertise, similar to drone supply, corresponding reductions within the engineering groups devoted to that venture is likely to be anticipated. Conversely, elevated hiring in areas like cloud computing or synthetic intelligence might sign a strategic concentrate on these domains.
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Retail and Operations
Reductions in retail and operations typically replicate changes to provide chain administration, stock management, or customer support methods. As an illustration, if Amazon decides to optimize its warehousing and logistics community, it would scale back staffing ranges in particular achievement facilities or supply operations. Equally, modifications in customer support methods, similar to elevated reliance on automated chatbots, might result in reductions in customer support representatives.
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Human Sources and Recruiting
Reductions in human sources and recruiting typically accompany total workforce reductions, as the necessity for these capabilities decreases with a smaller worker base. When an organization reduces its hiring actions, it usually requires fewer recruiters and HR specialists to handle the method. That is notably true in periods of financial downturn or organizational restructuring, the place hiring freezes and lowered recruitment efforts are frequent.
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Advertising and marketing and Gross sales
Reductions in advertising and gross sales can replicate modifications in advertising methods, goal market focus, or total gross sales efficiency. For instance, if Amazon decides to shift its advertising focus from conventional promoting to digital channels, it would scale back employees in conventional advertising roles whereas growing funding in digital advertising experience. Equally, declining gross sales in a selected product class would possibly result in reductions within the gross sales groups devoted to that class.
By inspecting the particular departments impacted by workforce reductions, one positive aspects a extra nuanced understanding of the underlying drivers and strategic implications. Analyzing the distribution of those reductions throughout totally different purposeful areas supplies insights into an organization’s evolving priorities, operational changes, and responses to market dynamics. This granular perspective permits for a extra knowledgeable evaluation of the long-term influence of workforce changes on the group’s efficiency and future route. Moreover, understanding the focused nature of those reductions supplies useful context for traders, analysts, and job seekers alike.
6. Severance Packages
Severance packages play a vital position within the aftermath of workforce reductions, offering a monetary bridge for terminated workers as they transition to new alternatives. When an organization like Amazon terminates employment for a major variety of people, the availability of severance packages turns into a key facet of the method, demonstrating company accountability and mitigating the monetary influence on affected workers. Analyzing the elements and adequacy of those packages supplies insights into the corporate’s method to worker relations and its dedication to supporting departing employees. This examination additionally gives useful context for understanding the broader implications of workforce reductions on each people and the native financial system.
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Financial Compensation
Financial compensation varieties the core of most severance packages, offering a lump-sum fee or ongoing funds for a specified length. This monetary help helps terminated workers cowl residing bills whereas trying to find new employment. The quantity supplied usually depends upon components like tenure, wage stage, and firm coverage. For instance, a long-tenured worker at Amazon would possibly obtain a extra substantial severance fee than a newer rent. The adequacy of this compensation is essential for mitigating the monetary hardship confronted by terminated workers.
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Advantages Continuation
Severance packages typically embrace provisions for the continuation of sure advantages, similar to medical insurance protection, for a restricted interval. That is notably vital in nations like the US, the place healthcare is usually tied to employment. Persevering with these advantages, even quickly, supplies a security web for terminated workers and their households. As an illustration, a severance bundle would possibly cowl COBRA funds, permitting former Amazon workers to take care of their current medical insurance protection for an outlined interval.
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Outplacement Providers
Outplacement companies, similar to profession counseling, resume writing help, and job search help, are generally included in severance packages. These companies intention to facilitate the transition to new employment by offering sensible sources and steerage. A strong outplacement program can considerably enhance the job prospects of terminated workers, serving to them navigate the job market successfully. Within the context of Amazon’s workforce discount, offering outplacement companies might help affected workers to find new roles throughout the tech business or different sectors.
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Authorized Concerns
Severance agreements typically embrace authorized stipulations, similar to non-disparagement clauses or waivers of sure authorized rights. Understanding these clauses is essential for terminated workers to make knowledgeable selections about accepting the severance bundle. For instance, a non-disparagement clause would possibly prohibit former Amazon workers from publicly criticizing the corporate. It will be significant for terminated workers to fastidiously assessment these authorized elements with authorized counsel earlier than accepting a severance settlement.
The small print of the severance packages supplied to the 200 terminated Amazon workers are important for understanding the complete influence of this workforce discount. Analyzing the elements of those packages, together with financial compensation, advantages continuation, and outplacement companies, supplies insights into Amazon’s method to worker relations and its dedication to supporting departing employees. Moreover, contemplating the authorized elements of severance agreements underscores the significance of knowledgeable decision-making for affected workers. Inspecting these parts collectively contributes to a extra complete understanding of the human and financial penalties of workforce changes in a big group like Amazon.
7. Worker Morale
Worker morale, a essential consider organizational success, could be considerably impacted by workforce reductions. Inspecting the potential results of the termination of 200 workers on remaining Amazon employees supplies useful insights into the general organizational local weather and its potential penalties. Understanding how such occasions affect worker notion, productiveness, and retention is essential for assessing the long-term influence on the corporate.
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Uncertainty and Anxiousness
Workforce reductions typically create a local weather of uncertainty and anxiousness amongst remaining workers. The concern of additional job losses, elevated workload on account of lowered staffing, and potential modifications in duties can contribute to a way of unease and insecurity throughout the group. This may manifest in decreased productiveness, lowered engagement, and elevated stress ranges amongst workers who stay. Within the case of Amazon, the termination of 200 workers would possibly create uncertainty amongst remaining employees relating to the corporate’s future route and the safety of their very own positions.
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Impression on Belief and Communication
How an organization manages workforce reductions can considerably influence worker belief and communication. Clear and empathetic communication relating to the explanations for the reductions and the help supplied to affected workers may help preserve belief and mitigate detrimental perceptions. Conversely, an absence of transparency or perceived unfairness within the course of can erode belief and injury communication channels throughout the group. Within the context of Amazon, open and trustworthy communication concerning the causes for the terminations and the standards used for choice may help preserve belief amongst remaining workers.
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Survivor’s Guilt and Decreased Motivation
Remaining workers might expertise “survivor’s guilt” after a workforce discount, notably if that they had shut relationships with terminated colleagues. This may result in decreased motivation, disengagement, and a decline in total morale. Moreover, elevated workloads and duties on account of lowered staffing can exacerbate these emotions, contributing to burnout and lowered productiveness. Inside Amazon, addressing these considerations by way of team-building actions, help packages, and clear communication about future expectations may help mitigate the detrimental impacts on remaining employees.
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Retention and Recruitment Challenges
Vital workforce reductions can negatively influence an organization’s capability to draw and retain expertise. Potential candidates might understand the group as unstable or uncaring, whereas current workers would possibly turn out to be extra open to exterior job alternatives. This may create a cycle of attrition, additional impacting morale and productiveness. For Amazon, sustaining a constructive employer model and addressing considerations about job safety are essential for mitigating potential retention and recruitment challenges within the aftermath of workforce reductions.
Analyzing the potential impacts on worker morale supplies a deeper understanding of the broader penalties of workforce reductions. Whereas such selections is likely to be crucial for monetary or strategic causes, their influence on remaining workers can’t be ignored. Addressing considerations about job safety, workload, and future prospects by way of clear communication and supportive packages is essential for mitigating the detrimental penalties and sustaining a constructive organizational local weather. The long-term success of firms like Amazon relies upon not solely on strategic selections but in addition on the well-being and morale of its workforce. Understanding this interaction is crucial for navigating difficult durations and making certain sustainable organizational well being.
8. Future hiring plans
Inspecting Amazon’s future hiring plans within the context of the 200 worker terminations gives useful insights into the corporate’s strategic route and operational changes. Workforce reductions are sometimes adopted by focused hiring in particular areas, reflecting evolving priorities and useful resource reallocation. Analyzing these hiring plans supplies a forward-looking perspective, revealing potential development areas, skillset calls for, and the general trajectory of the group. This evaluation may illuminate the rationale behind the terminations, indicating whether or not they signify a cost-cutting measure, a strategic shift, or a mixture of things. Understanding this interaction between workforce reductions and future hiring plans supplies a extra complete image of the corporate’s long-term imaginative and prescient.
As an illustration, if Amazon’s subsequent hiring focuses closely on cloud computing specialists or synthetic intelligence consultants, it suggests a strategic emphasis on these areas, doubtlessly indicating that the terminations have been a part of a broader realignment of sources. Conversely, a widespread hiring freeze throughout a number of departments following the terminations would possibly counsel a extra cautious method pushed by financial considerations or market uncertainty. Actual-world examples, similar to IBM’s strategic shift in the direction of cloud computing and its corresponding hiring patterns, exhibit how workforce changes and future hiring plans are sometimes intertwined. IBM’s resolution to cut back its workforce in legacy {hardware} divisions whereas concurrently growing hiring in cloud-related roles displays a deliberate strategic shift in the direction of a brand new development space. Equally, analyzing Amazon’s hiring patterns following the 200 worker terminations can present clues concerning the firm’s future route.
Understanding the connection between workforce reductions and future hiring plans is essential for traders, analysts, and job seekers alike. Traders can use this info to evaluate the corporate’s long-term development prospects and strategic alignment. Analysts can acquire insights into business traits and aggressive dynamics. Job seekers can determine rising skillset calls for and goal their profession growth accordingly. The power to attach these seemingly disparate items of informationworkforce reductions and future hiring plansprovides a robust instrument for understanding the complicated dynamics of the trendy enterprise panorama. This understanding empowers stakeholders to make extra knowledgeable selections and navigate the evolving job market successfully.
Continuously Requested Questions
This part addresses frequent questions relating to workforce reductions, offering readability and context for understanding such occasions.
Query 1: What are the standard causes behind large-scale terminations?
A number of components can contribute to large-scale terminations, together with financial downturns, firm restructuring, mergers and acquisitions, strategic shifts, and automation. Every state of affairs presents distinctive circumstances, and understanding the particular context is essential for correct evaluation.
Query 2: How do these terminations have an effect on the broader financial system?
Giant-scale terminations can have ripple results all through the financial system, impacting shopper spending, investor confidence, and the general job market. The magnitude of those results depends upon the size of the terminations, the business concerned, and the prevailing financial situations.
Query 3: What authorized protections can be found for terminated workers?
Authorized protections range relying on the jurisdiction and particular circumstances of the termination. Workers ought to seek the advice of with authorized counsel to know their rights relating to severance pay, advantages continuation, and potential authorized recourse.
Query 4: How can firms mitigate the detrimental impacts of workforce reductions?
Corporations can mitigate detrimental impacts by way of clear communication, truthful severance packages, outplacement companies, and help packages for remaining workers. Open and trustworthy communication concerning the causes for the reductions and the help supplied may help preserve belief and morale.
Query 5: What position does expertise play in workforce changes?
Technological developments, similar to automation and synthetic intelligence, play an more and more important position in workforce changes. Whereas expertise can create new alternatives, it could actually additionally result in displacement in sure roles, necessitating reskilling and adaptation.
Query 6: How can people put together for potential job displacement?
Creating in-demand abilities, sustaining a robust skilled community, and staying knowledgeable about business traits are essential for navigating the evolving job market. Adaptability and steady studying are important for profession resilience in right now’s dynamic setting.
Understanding the multifaceted nature of workforce reductions requires contemplating numerous components, together with financial situations, firm methods, and particular person circumstances. These FAQs present a place to begin for additional exploration and evaluation.
Additional evaluation of particular circumstances, such because the termination of 200 workers at Amazon, requires inspecting the particular context, together with the corporate’s monetary efficiency, strategic objectives, and communication with affected workers. This deeper dive supplies a extra nuanced understanding of the state of affairs and its potential implications.
Navigating Workforce Reductions
Workforce changes, such because the termination of 200 workers by a serious company, provide useful classes for each organizations and people. These occasions underscore the significance of proactive planning, adaptable skillsets, and a resilient mindset in right now’s dynamic financial setting. The next insights and methods present steerage for navigating these challenges successfully.
Tip 1: Steady Talent Growth: Investing in steady talent growth is essential for sustaining profession resilience. Buying in-demand abilities and staying abreast of business traits enhances employability and flexibility within the face of evolving market dynamics. Specializing in abilities aligned with future development areas, similar to cloud computing, knowledge analytics, or synthetic intelligence, can additional strengthen one’s place within the job market. Frequently assessing one’s skillset and pursuing related coaching or certifications can present a aggressive edge.
Tip 2: Community Cultivation: Cultivating a robust skilled community supplies entry to info, help, and potential alternatives. Actively partaking with skilled organizations, attending business occasions, and sustaining connections with colleagues and mentors can show invaluable throughout profession transitions. A strong community can provide help, steerage, and entry to unadvertised job alternatives.
Tip 3: Monetary Preparedness: Sustaining a wholesome monetary reserve is crucial for navigating durations of unemployment or profession transition. Constructing an emergency fund can present a monetary cushion to cowl residing bills whereas trying to find new employment. This monetary preparedness reduces stress and supplies higher flexibility throughout instances of uncertainty.
Tip 4: Profession Adaptability: Cultivating profession adaptability is essential in right now’s quickly evolving job market. Being open to new roles, industries, and even geographic places expands profession choices and enhances resilience. Embracing a development mindset and viewing change as a chance for studying and growth can facilitate profitable profession transitions.
Tip 5: Understanding Market Traits: Staying knowledgeable about business traits, technological developments, and financial forecasts supplies useful insights for profession planning and decision-making. Understanding market dynamics permits people to anticipate potential disruptions and proactively regulate their skillsets and profession methods accordingly. Subscribing to business publications, attending webinars, and interesting in steady studying may help people keep forward of the curve.
Tip 6: Proactive Profession Administration: Frequently reviewing and updating one’s resume, on-line profiles, and portfolio ensures readiness for potential job searches. Proactively in search of suggestions, pursuing mentorship alternatives, and interesting in self-assessment can improve profession growth and preparedness for future alternatives. Treating profession administration as an ongoing course of, relatively than a reactive measure, strengthens one’s place within the job market.
These methods, when carried out proactively, improve profession resilience and facilitate profitable navigation of workforce changes and financial fluctuations. Specializing in steady studying, networking, monetary preparedness, and flexibility empowers people to thrive in a dynamic and ever-changing setting.
The previous insights present a basis for navigating the complexities of the trendy job market. The next conclusion synthesizes these key takeaways and gives a forward-looking perspective on profession administration in a dynamic setting.
Conclusion
Evaluation of workforce reductions, such because the termination of 200 workers by Amazon, requires a multifaceted method. Concerns embrace the interaction of financial situations, company-specific methods, technological developments, and particular person worker efficiency. Understanding the context surrounding such occasions, together with the impacted departments, severance packages supplied, and potential results on remaining worker morale, supplies useful insights into the complexities of recent workforce dynamics. Moreover, inspecting an organization’s future hiring plans following workforce reductions gives a forward-looking perspective on its strategic route and evolving skillset calls for. This complete evaluation allows a deeper understanding of the broader implications of such occasions for each organizations and people.
Workforce changes underscore the significance of steady adaptation and proactive profession administration in right now’s dynamic setting. People can navigate these challenges successfully by prioritizing steady talent growth, cultivating robust skilled networks, sustaining monetary preparedness, and embracing a mindset of adaptability. Staying knowledgeable about business traits and proactively managing one’s profession trajectory are important for long-term profession resilience. The evolving employment panorama calls for a proactive and adaptable method, empowering people to navigate change and thrive in a dynamic market. Additional analysis and evaluation of particular workforce changes, coupled with a concentrate on particular person profession preparedness, can be essential for navigating the complexities of the long run job market.