Labour Flexibility Job Security | Flexible Jobs | Labor Definition Economics

Labour Flexibility Job Security | Flexible Jobs | Labor Definition Economics

Flexicurity is a portmanteaucombining two words labour flexibility and job security. It 1implies a blend of social security and high flexibility in the labour market. Flexicurity can be explained using two views of the labour market. That is, employees’ view of labour market and theview of employers about the labour market. Employees need an assurance of job security, employment security and income security. On the other hand, employers require some levelof flexibility that gives them room for functional and wage adjustment. This is important since employers need to respond to changing conditions from time to time to maintain competitiveness and efficiency.
The aim of flexicurity is to combine job security of the employee with labour market relations thereby generating economic adjustment opportunities for employers. These two aspectsare balanced in a way, establishing a mutually beneficialstructure leading to a situation where the employee is provided with adequate security and the employer is afforded opportunities for economic adjustment. One underlying feature of flexicurity is that both

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Labour Flexibility Job Security | Flexible Jobs | Labor Definition Economics

Labour Flexibility Job Security | Flexible Jobs | Labor Definition EconomicsLabour Flexibility Job Security workers and organisations can benefit from flexibility and security. For instance it would lead to better work organization, greater upward mobility due to greater skills acquired from enhanced training, firms would benefit from return on training due increased productivity while helping employees adapt to changing working requirements.[1]

There are four policy requirements for flexicurity to function. First, there must be flexible and reliable contracts. Employers, employees, insiders, and outsiders must have complete trust that contracts will be honoured. These contacts can be reinforced through modern laws and trade unions. Another requirement is presence of comprehensive lifelong learning schemes in place to ensure constant adaptability of employees, more so the most susceptible. Also, there should be effective active labour market policies which would assist people to deal with unexpected changes, reduced durations of unemployment and facilitate quick transition into new jobs. Finally, there should be a modern and efficient social welfare system.

This system should guarantee sufficient income support, encourage people to look for and stay in jobs, and expedite mobility in the labour market. This includes provision of social protection that facilitates combination of work with social responsibilities.[2] There are two dimensions of flexicurity; flexibility and job security.

Labour Flexibility Job Security | Flexible Jobs | Labor Definition Economics

Common policies applied to cushion workers from labour markets risks include employment protection legislation (EPL) and unemployment insurance benefits (UIB) economists generally agree on the effect of EPL on labour market performance. More employment protecltion eads to lesser firing and hiring. The effect on unemployment rate is however ambiguous. Essentially, EPL reduces the penetrability barrier of the wall between unemployment and work.

On the other hand, generous UIB programmes have lesser effect on general labour markets dynamics. Usually UIBs are compatible with greater need for flexible labour markets. The impact of EPL and UIB on the macroeconomy is therefore familiar ground for almost all economists. However, it is important we establish the effect of EPL and UIB on workers’

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