Flexibility problems of the labor market

Abstract

The flexibility of the labor market is one of the main problems of labor market theory and policy. Apparently, this is a simple and understandable concept, but in the literature economic benefits are widely recognized. As a rule, they can be understood as the ease of adaptation of labor market participants to changing external and internal conditions. Workers in a flexible labor market easily find new jobs, and employers slow down the work of unnecessary employees, fire them or take a new ones. The opposite side of a flexible market is a tough market, in which conditions the work changes are very complex.Based on the considerations and results of published empirical studies in the economic literature, it can be concluded that in today's economy there is a decline in the importance of trade unions and collective labor law in order to increase the importance of individual law. This indicates an increase in the scale of deregulation of labor markets. Of course, this process is very diverse, depending on the degree of integration of the market into the world market, local conditions and economic traditions.