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Employment

Private equity faces accusations from critics of job destruction, poor remuneration and weakened productivity.

Supporters, meanwhile, point to the fact that a deal would be unlikely in the first place if the business was performing ideally since little gain would be achieved from implementing operational improvements. Moreover, they argue that capital infusion from a firm helps generate growth which creates more demand for workers as the scale of a business increases.

Both sides of the debate have conducted empirical research that supports their arguments in the section below, examining the effects of private equity on employment, wages and human resource management.

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