Economics Tutor News Focus: McDonald’s boss and Flexible Labour Markets
The UK chief executive of McDonald’s yesterday defended the firm’s use of zero- hours contracts, saying that they help workers to stay flexible: http://www.bbc.co.uk/news/business-34060260
Knowledge and Analysis
This is a form of temporal flexibility where there is a change in part time staff to meet changes in demand. Labour market flexibility is a classic exam question since you its success is debatable. Its proponents explain it reduces unemployment, and inflation and so makes the UK more competitive: and this has benefits for a firm and the macro economy generally, however, its detractors explain it increases wages inequality.
Labour market flexibility is a new addition to the economics specification, and so likely it will be tested, to ensure it’s been taught well. It’s really a matter of applying the principles to facts in the question. As an economics tutor, it’s important that I tell you that, the UK has one of Europe’s most flexible labour markets, and indeed an economics tutor job itself is a cast iron representation of such an phenomenon.
My take on it
Lots of employers use 0 hour contracts when employing younger workers, but how well it suits you depends on what you do in your spare time.
It can be a blessing from the otherwise straight-laced nature of the workplace. Technology permits some people to invent a bright scheme and skim stones or set sail in a yacht around the Bahamas: a kind of radical flexibility.
So, the take of an economics tutor? we live in a technological world, hold on to it’s tails and ride the waves, or else learn to swim well.
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