Consider the jobless recovery of 2004. Many firms, during the recession, laid off workers. Yet many of these same firms were reluctant to begin hiring, even as the economic situation improved. The result was weak job growth during the recovery: Even when net job growth was positive, it failed to keep pace with the growing labor force. Wages, prices, and employment levels can all be sticky. Normally, a variable oscillates according to changing market conditions, but when stickiness enters the system, oscillations in one direction are f ...

See also:

Sticky economics, Sticky economics - Examples of stickiness, Sticky economics - Impact during Deflation

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