The Impact of Labour Market Flexibility on Businesses and Consumers
Labour market flexibility or rigidity refers to employment issues such as staff wages, the ease of which companies can hire and fire employees, length of probation periods and power of unions. Flexible labour markets are characterised by things such as low minimum wage and laws that don’t impede the hiring or termination of employees. These flexible markets, which favour worker’s rights can lead to lower unemployment and higher labor productivity. Overall, a balance should be struck between employee and employer rights to maintain a healthy economy.