Certain companies are labor hoarding, which is the practice of keeping more workers employed than the company needs. This allows companies to avoid layoffs and protects against talent shortages. Companies can also stay ahead of the competition and have security during uncertain economic futures. Keeping more workers than the company needs allows companies to avoid constantly finding and training new talent to fill open positions. Labor hoarding has a variety of positive effects on the economy, as it keeps unemployment rates low, encourages consumer spending, and stimulates GDP growth. However, labor hoarding also has negative effects, and the practice increases wage inflation, delays wage raises, and increases the amount of time it takes for job seekers to find work as fewer positions are available.
See "Labor hoarding has mixed effects on companies, workers, and the economy", Jack Kelly, Forbes, August 10, 2023