Labour Market Reforms Flashcards

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What are labour market reforms?

Changes to laws and rules about jobs to make hiring and working easier and more flexible.

Name two examples of labour market reforms.

Easing hiring and firing rules, and changing trade union laws, such as the rules on strikes.

How can easier hiring and firing reduce unemployment?

It lowers risk for firms, so they take on more staff. If demand drops, they can adjust staff numbers.

What does wage flexibility mean?

Pay can move up or down to match supply and demand for labour. This helps jobs fill faster.

How can changing trade union laws affect the labour market?

Requiring strike ballots and notice can cut disruption. Firms may be more willing to hire.

What is the National Minimum Wage?

The lowest hourly pay most workers can legally be paid in the UK.

How can a very high minimum wage affect employment?

It can price some low-skilled workers out of jobs if firms cannot afford the higher pay.

What are flexible working practices?

Ways of working like part-time hours, temporary contracts, or flexible shifts. They help more people take jobs.

How can better job matching reduce unemployment?

Good job information and support, such as Jobcentre services and online adverts, help people find work faster.

What is labour mobility and how can policy improve it?

It is how easily people move area or role for work. Policies like relocation grants can make moving for a job easier.