January 2019

The Employment Flexibility Index of LFMI quantifies a great divergence in employment regulations between EU countries. Of the 41 countries included in the index (EU and OECD countries), Denmark and the United States were ranked as having the most flexible labour regulations, while France and Luxembourg were ranked last.

Flexible employment regulations may allow for more employment opportunities and enable businesses to respond to market fluctuations.

A proposed Council Recommendation by the European Commission seeks to provide workers in non-standard employment, such as those who are self-employed, with social security protection. The Commission’s rationale is to ensure that employees who have exceptional employment circumstances are protected during economically challenging times. This proposal could decrease employment flexibility throughout the EU.