Labor market flexible

Labor market flexibility refers to how easily employers can adjust the number of employees, wages, and working conditions in response to economic changes. A flexible labor market allows companies to quickly hire or lay off workers, change hours, or modify pay to better match demand. This mobility helps economies adapt to shifts, encouraging growth and reducing unemployment. Conversely, inflexible markets—where regulations or contracts make adjustments difficult—can hinder responsiveness, potentially leading to higher unemployment or reduced competitiveness. Overall, flexibility aims to balance worker protections with the needs of businesses to adapt efficiently.