LIFO in the Czech jobs market
In accounting, the Last-In, First-Out (LIFO) inventory-management method means that the last items produced or acquired are the first items used, sold or disposed of. It's banned under International Financial Reporting Standards, because it distorts the financial position of a company by prolonging the length of time that lower-priced inventory remains on the books. Instead, the First-In, First-Out (FIFO) method must be used. In a normal labor market, a sort-of unofficial FIFO method also prevails. As long-serving workers retire, they're replaced by younger reinforcements. In an overheated labor market, where wage increases start outstripping productivity and profitability benchmarks, companies must explore their options. When the economy then turns down, companies start by jettisoning the overpriced ballast. Czech workers who are ready to jump ship for an extra grand don't always seem to realize how close the jobs market might be to switching to LIFO.
Glossary of difficult words
reinforcements - extra personnel sent to increase the strength of an army or similar force;to outstrip - to exceed; to move faster than and overtake (someone else);
benchmark - a standard or point of reference against which things may be compared;
to turn down - to start to decline;
to jettison - to throw or drop (something) from an aircraft or ship; to abandon or discard (someone or something that is no longer wanted);
ballast - something providing stability or substance; heavy material, such as gravel, sand, or iron, placed in the bilge of a ship to ensure its stability;
to jump ship - to quit; (of a sailor) to leave the ship on which one is serving without obtaining permission to do so;
grand - a thousand dollars, pounds or same amount of another currency.