What is a Flexible Labour Market?
Economists who believe in the power of freely functioning markets for goods, services, capital and people are frequently strong supporters of flexible labour markets. But there is no unique definition of the term. In fact we find that a flexible labour market has several characteristics Occupational (functional) flexibility – this refers to the ability of the workforce to perform different tasks and to acquire and apply transferable skills. A worker with transferable skills will be able to move easily from one job to another – they will be occupationally mobile. Flexibility can also be encouraged by better training, and provide incentives for people to adapt their skills. There is still a ‘skills gap’ between the UK and many of our main international competitors. Rapid technological change and the pressures of globalization are putting a premium on raising the skills of the workforce and increasing the adaptability of people in work. Ease and cost of hiring and firing workers: Reforms
