What Is Labor Market Flexibility?
Labor market flexibility is an important aspect of the labor market. It allows companies to make certain decisions about changing their labor force in response to fluctuations in the market and to help boost production.
Organizations can make changes to their labor pool based on factors such as employee hiring and firing, compensation and benefits, and working hours and conditions. Companies do not have carte blanche, however, to implement a flexible labor market because of laws and policies that protect employees and the labor pool.
