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  • Anforme To What Extent has the Labour Market in the UK become More Flexible?

Anforme To What Extent has the Labour Market in the UK become More Flexible?

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Russell Dudley-Smith, Head of Sixth Form at Westminster School, and previously a Chief Examiner, analyses the concept of labour market flexibility with respect to recent changes in the UK.

Summary of Key Points:

  • Flexibility refers to the speed of responsiveness of the labour market to changes in demand or supply.
  • Inflexibilities may occur that prevent wages falling to clear the market, or those that prevent supply responding to increased demand.
  • A number of changes have increased flexibility in the UK: outsourcing, the growth of short-term and part-time contracts, and reduced powers of trades unions.
  • However, much of the relationship between workers and their employees is established outside of the labour market.
  • Legislation in this area has included the working time directive, the minimum wage, redundancy rights for part-time workers, and employ- ment tribunals.

This article featured in ET Volume 18 Issue 4.

Russell Dudley-Smith, Head of Sixth Form at Westminster School, and previously a Chief Examiner, analyses the concept of labour market flexibility with respect to recent changes in the UK.

Summary of Key Points:

  • Flexibility refers to the speed of responsiveness of the labour market to changes in demand or supply.
  • Inflexibilities may occur that prevent wages falling to clear the market, or those that prevent supply responding to increased demand.
  • A number of changes have increased flexibility in the UK: outsourcing, the growth of short-term and part-time contracts, and reduced powers of trades unions.
  • However, much of the relationship between workers and their employees is established outside of the labour market.
  • Legislation in this area has included the working time directive, the minimum wage, redundancy rights for part-time workers, and employ- ment tribunals.

This article featured in ET Volume 18 Issue 4.

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