REDUNDANCY, NATURAL TURNOVER AND THE PARADOX OF STRUCTURAL CHANGE

The properties of the labour market are such that moderate employment shifts can be accommodated by, and might even encourage, the natural movement of labour between jobs. But the scale and extent of employment adjustments in recent years has produced an altogether different response. Voluntary movement has fallen dramatically as unemployment has risen. Redundancies have increased in importance in absolute and relative terms. The pace of adjustment in recent years has reduced the natural flexibility of the labour market and has created a serious impediment to the optimal distribution of labour. Moreover, an economic doctrine which emphasizes the importance of flexibility and personal choice in the labour market, has effectively reduced both.