Labour market - Essay Example
Labour market flexibility refers http://best-college-application-essay-service76636.mystrikingly.com/ to the ability and the willingness of labour to respond to changes in the market condition, including changes in the demand for work force and the wage rate. The labour market flexibility is an imperative aspect of how labour markets adjusts to supply and demand, it is therefore has a key role to the supply side of the macroeconomics. A flexible labour market is when firms are under fewer regulations concerning the labour force and therefore, can set their own wages, change their work hours and fire employees (Michie & Sheehan 2003, P.131). In contrast, a labour market with low flexibility is bound by some rules and regulations such as requirements from trade unions and minimum wage restrictions.
