There is a difference between the hiring level and the production level. Why does it happen?

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There is a difference between the hiring level and the production level. Why does it happen?

The difference depends on the motivation of the workers in the corporation. If the workers are poorly paid and the corporation is doing badly, workers produce less and the production level drops lower than the hiring level. On the other hand, if wages are good, the corporation is effective and produces high quality products, workers are motivated and the production level may rise beyond the hiring level.

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