What is the most likely impact of a recession on human resources? (A) Increase in wages (B) Increase in overtime (C) Decrease in involuntary separation (D) Decrease in employee bargaining power - HSC - SSCE Business Studies - Question 16 - 2014 - Paper 1

During a recession, the demand for labor typically decreases as businesses may cut costs and reduce hiring. This shift usually leads to a surplus of available labor, giving employers a stronger negotiating position. Consequently, employees might find it harder to negotiate wages and benefits, resulting in a decrease in their bargaining power. Thus, the most likely impact of a recession on human resources would be a decrease in employee bargaining power (Option D).