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degree of labour market flexibility is the speed with which labour markets adapt to fluctuations and changes in society the economy or production this entails enabling labour markets to reach a continuous equilibrium determined by the intersection of the demand and supply curves 1 2 labour unions can limit labor market flexibility by negotiating higher wages benefits and better working conditions with employers in the words of siebert 3 labour unions were seen to inhibit the clearing functions of the market by weakening the demand for labor making it less attractive to hire a worker by explicitly pushing up the wage costs or by introducing a negative shadow price for labor by distorting the labor supply and by impairing the equilibrating function of the market mechanism for instance by influencing bargaining behavior 4 theory edit the most well known concept of labour market flexibility is given by atkinson 5 6 based on the strategies companies use he notes that there can be four types of flexibility external numerical flexibility edit external numerical flexibility is the adjustment of the labour intake or the number of workers from the external market this can be achieved by employing workers on temporary work or fixed term contracts or through relaxed hiring and firing regulations or in other words relaxation of employment protection legislation where employers can hire and fire permanent employees according to the firms needs employers typically prefer high levels of unemployment because as workers become more desperate for employment they are willing to work for lower wages thus increasing employer profits internal numerical flexibility edit internal numerical flexibility sometimes known as working time flexibility or temporal flexibility is achieved by adjusting working hours or schedules of workers already employed within the firm this includes part time flexi time or flexible working hours or shifts including night shifts and weekend shifts working time accounts leaves such as parental leave and overtime many employers thus hire large numbers of part time employees to avoid government regulations associated with full time employees such as the requirement that employers pay for health insurance of their full time employees this allows employers to maximize their own profits while decreasing the standard of living of the working classes functional flexibility edit functional flexibility or organizational flexibility is the extent to which employees can be transferred to different activities and tasks within the firm it has to do with organization of operation or management and training workers this can also be achieved by outsourcing activities job rotation is a label given to many functional flexibility schemes financial or wage flexibility edit financial or wage flexibility occurs when wage levels are not decided collectively and there are more differences between the wages of workers this is done so that pay and other employment costs reflect the supply and demand of labour and so that employers can force employees to compete for wages thus lowering the average wage paid to employees and ultimately to maximize profits while decreasing the standard of living of the working classes this can be achieved by rate for the job systems or assessment based pay system or individual performance wages flexibility for workers edit labour market flexibility refers to more than the strategies used by employers to adapt to their production or business cycles as it is in the definitions above increasingly the common view is that labour market flexibility can potentially be used for both workers and companies or employees and employers 7 it can also be used as a method to enable workers to adjust working life and working hours to their own preferences and to other activities 8 as companies adapt to business cycles and facilitate their needs through the use of labour market flexibility strategies workers adapt their life cycles and their needs through it chung 2006 the european commission also addresses this issue in its joint employment report and its new flexicurity approach calling for an adequate method to enhance flexibility for both workers and employers that is capable of quickly and effectively mastering new productive needs and skills and about facilitating the combination of work and private responsibilities 9 etuc also emphasizes the importance of the development of working time flexibility as an alternative to implementing external flexibility as the sole method of increasing flexibility in the labour market etuc 2007 in their report on working time the tuc has also argued that flexible working should be extended to all workers through stronger regulations 10 as authors gerson and jacobs agree flexibility and autonomy are only useful if workers feel able to use them gerson jacobs 2004 pg 238 11 some of the widely used arrangements that enable workers more flexibility in their work include flextime remote work and part time jobs see also edit contingent work non permanent type of employment corporate amnesia loss of shared knowledge and experience employment protection legislation flexicurity welfare state model with a pro active labour market policy flexitime flexible hours schedule in workdays pages displaying short descriptions of redirect targets labour economics study of the markets for wage labour labour law laws that govern the relationship between workers employers unions and governments occupational licensing form of government regulation on professions or vocations for compensation precarity lacking in predictability job security material or psychological welfare 12 precarious work type of non standard or temporary employment unemployment people without work and actively seeking work gig economy economic system of freelance workers exploitation of labour economic phenomenon working time period of time that an individual spends at paid occupational labor organized labour portal notes edit standing 1989 jimeno and tohara 1994 karanassou marika sala hector snower dennis j the macroeconomics of the labor market three fundamental views pdf institute for the study of labor retrieved 15 september 2022 siebert 1997 43 siebert horst summer 1997 labour market rigidities at the root of unemployment in europe journal of economic perspectives 2 3 43 doi 10 1257 jep 11 3 37 atkinson 1984 atkinson and meager 1986 chung h tijdens k 2013 working time components and working time regimes in europe using company level data across 21 countries international journal of human resource management 24 7 1418 143 jepsen klammer 2004 157 chung 2008 do institutions matter archived copy pdf archived from the original pdf on 2011 10 05 retrieved 2008 09 25 cite web cs1 maint archived copy as title link fagan 2006 gerson k jacobs j 2004 the work home crunch in gender and sexualities pp 231 240 understanding society 2022 references edit atkinson j 1984 flexibility uncertainty and manpower management pdf report ims report no 89 institute of manpower studies brighton atkinson j meager n 1986 changing working patterns how companies achieve flexibility to meet new needs institute of manpower studies national economic development office london isbn 0729207889 chung h 2006 labour market flexibility for employers or employees a multi dimensional study of labour market flexibility across european welfare states paper presented at the 2006 annual espanet conference shaping euoropean systems of work and welfare 7 9 september 2006 bremen paper link fagan c hegewisch a pillinger j 2006 out of time why britain needs a new approach to working time flexibility pdf trade union congress london archived from the original pdf on 2007 09 27 reilly peter andrew 2001 flexibility at work balancing the interests of employer and employee aldershotd gower isbn 978 0 56608 259 7 wallace c 2003 work flexibility in eight european countries a cross national comparison sociological series 60 institute for advanced studies vienna flexibility or exploitation what do we know about zero hours contracts understanding society 2022 03 24 retrieved 2023 11 02 external links edit reflect research institute for flexicurity labour market dynamics and social cohesion at tilburg university carma v t e capitalism definitions perspectives concepts anarchy of production business cycle centralization competition competition law depression deregulation economic bubble economic development economic liberalism economic planning entrepreneurship ecopreneurship externality financial crisis globalization global labor arbitrage market economy market failure merchantilism meritocracy multinational corporation nationalization oligopoly privatization primitive accumulation profit property rights recession regulation simple commodity production totalitarian capitalism wage labour wage slavery wealth history age of enlightenment commercial revolution feudalism financial revolution history of capitalist theory industrial revolution late capitalism merchant capitalism physiocracy ideology anglo saxon authoritarian conservative corporate democratic dirigist free market humanistic islamic laissez faire liberal libertarian market mercantilist mixed monopoly national neo neoliberal private raw regulated market regulatory rhine social state state sponsored welfare culture advertising american dream black friday consumerism decentralization economic freedom economic mobility individualism liberalism philanthropy private foundation private property rule of law social alienation spontaneous order society corporatism criticism of welfare economic inequality employment freedom of association labour market flexibility labour supply productivity prosperity social venture capital unemployment criticism anti capitalism anarchism communism socialism marxism capitalist propaganda communalism critique of political economy critique of work market fundamentalism post capitalism post scarcity economy sharing economy syndicate syndicalism capitalism portal category capitalism v t e employment classifications academic tenure casual contingent work full time job gig worker job sharing part time job self employment side job skilled worker journeyman technician tradesperson independent contractor labour hire temporary work laborer wage labour hiring application background check business networking cover letter curriculum vitae drug testing employment contract employment counsellor executive search list induction programme job fair job fraud job hunting job interview letter of recommendation onboarding overqualification person environment fit personality job fit theory personality hire probation realistic job preview recruitment résumé simultaneous recruiting of new graduates underemployment work at home scheme roles cooperative employee employer internship job labour hire permanent employment supervisor volunteering working class blue collar green collar grey collar pink collar precariat white collar red collar new collar no collar orange collar scarlet collar black collar gold collar career and training apprenticeship artisan master craftsman avocation career assessment career counseling career development coaching creative class education continuing education e learning employability further education graduate school induction training knowledge worker licensure lifelong learning overspecialization practice based professional learning professional association professional certification professional development professional school reflective practice retraining vocational education vocational school vocational university mentorship occupational outlook handbook practice firm profession operator professional tradesman vocation attendance break break room career break coffee badging compassionate leave bereavement leave furlough gap year leave of absence long service leave no call no show sabbatical sick guilt sick leave stress leave tardiness time clock schedules four day week eight hour day 35 hour workweek 996 working hour system flextime hybrid creep on call overtime remote work return to office rto six hour day shift work working time workweek and weekend wages and salaries decoupling of wages from productivity frisch elasticity of labor supply global labor arbitrage labour economics labor share labour supply living wage maximum wage median income minimum wage canada hong kong europe united states national average salary world europe pay bands price elasticity of demand progressive wage singapore overtime rate paid time off performance related pay remuneration salary cap wage growth benefits annual leave casual friday child care disability insurance health insurance life insurance marriage leave parental leave pension by country perk cession sick leave united states take home vehicle well being washing taxes payroll tax tax bracket income tax negative disposable income salary packaging unreported employment safety and health crunch epilepsy and employment human factors and ergonomics karoshi list of countries by rate of fatal workplace accidents occupational burnout occupational disease occupational exposure limit occupational health psychology occupational injury occupational noise occupational stress personal protective equipment repetitive strain injury right to sit united states sick building syndrome work accident occupational fatality workers compensation workers right to access the toilet workplace health promotion workplace phobia workplace wellness equal opportunity affirmative action discrimination equal pay for equal work gender pay gap glass ceiling infractions corporate collapses and scandals accounting scandal control fraud corporate behaviour corporate crime exploitation of labour dress code employee handbook employee monitoring evaluation labour law sexual harassment sleeping while on duty wage theft whistleblower workplace bullying workplace harassment workplace incivility willingness boreout careerism civil conscription conscription critique of work dead end job employment rate list job satisfaction mcjob organizational commitment refusal of work slavery bonded labour human trafficking labour camp penal labour peonage truck wages unfree labour wage slavery stay interview workforce work ethic work life interface downshifting slow living workaholic termination at will employment dismissal banishment room constructive dismissal wrongful dismissal employee offboarding employee turnover exit interview labour market flexibility layoff xiagang notice period pink slip resignation letter of resignation restructuring retirement mandatory retirement retirement planning retirement spend down severance package golden handshake golden parachute unemployment barriers to entry discouraged worker economic depression great depression long depression frictional unemployment full employment graduate unemployment involuntary unemployment jobless recovery neet phillips curve recession great recession job losses cause...