ELI5: Explain Like I'm 5

Labour market flexibility

Labour market flexibility means how easy it is for people to find new jobs and for companies to hire new workers. It is important for a strong economy because it allows companies to adjust the number of workers they need quickly and easily. Companies can hire workers when they need them, and then let them go when they don't need them anymore. This helps to keep the economy functioning well and makes sure everyone can find a job when they need one.