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Labor Market Flexibility

Decent Essays

Labor Market Flexibility is, in theory, the prerogative of employers to hire and subsequently fire workers without oversight, or the regard for regulation and/or influence of work unions (Marmot & Wilkinson, 2006). The thought process behind this idea is that firms are more likely to increase their workforce, and that a greater portion of society can be employed. Through my experience in watching the financial industry- and business-oriented Bloomberg News channel on Television, the model of having less regulatory oversight and influences from outside sources brings down the operating costs of companies and corporations, thereby allowing for greater investments by said firms, presumably, to hire more people. As indicated by (Marmot & Wilkinson, 2006), individuals with higher levels of job insecurity are thought to be more enticed to work harder than others, so this labor market model would be followed by an uptick in population-wide productivity levels. This would thereby lead to an increase …show more content…

It is not healthy, and it should change. While regulations are costly for businesses to comply with, they are needed to make sure that no industry gets in worse in its quality for workers and that no one can be let go without just cause. Furthermore, this should be in addition to proper notifications of any mistakes made and how to keep them from happening again, without fear of unemployment for it just occurring once. References: Marmot, Michael, and Richard G. Wilkinson. Social determinants of health. 2nd ed. Oxford: Oxford U Press, 2006. Print. Patton, L. (2017, January 11). The Job Market Is Heating Up for Fast-Food Workers. Bloomberg News. Retrieved February 18, 2017, from

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