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Labor Market Flexibility

Heritage Foundation Labor Freedom Index 2024 (0–100). Measures the flexibility of labor market regulations, including: minimum wage laws relative to average wages, restrictions on working hours (night/weekend work, overtime caps), ease of hiring non-standard workers (part-time, contract), difficulty and cost of dismissing employees, mandatory benefits and social security contribution rates, and union power. High scores (Denmark 91, New Zealand 93, Singapore 88, USA 82, Australia 84) indicate labor markets where firms can scale up or down efficiently, hire for short-term projects, and adapt quickly to market changes. Low scores (Venezuela 22, North Korea 5, France 41, Germany 43) indicate rigid labor markets where high firing costs and mandatory benefits create significant barriers to employment — causing firms to underinvest in new hires (leading to structural unemployment).

#↑ Country↕ Raw Value↕ Score↕
1 New Zealand93 pts 93 pts 92
2 Denmark91 pts 91 pts 90
3 Hong Kong90 pts 90 pts 89
4 Singapore88 pts 88 pts 87
5 Australia84 pts 84 pts 83
6 United States82 pts 82 pts 81
7 Ireland80 pts 80 pts 79
7 Canada80 pts 80 pts 79
7 Kazakhstan80 pts 80 pts 79
10 Bermuda78 pts 78 pts 77
10 Cayman Islands78 pts 78 pts 77
12 Malaysia77 pts 77 pts 76
13 England76 pts 76 pts 75
13 Wales76 pts 76 pts 75
13 Northern Ireland76 pts 76 pts 75
13 Scotland76 pts 76 pts 75
13 Japan76 pts 76 pts 75
13 Chile76 pts 76 pts 75
13 United Arab Emirates75 pts 75 pts 75
13 Gibraltar75 pts 75 pts 75
13 British Virgin Islands75 pts 75 pts 75
22 Luxembourg74 pts 74 pts 74
22 Switzerland74 pts 74 pts 74
22 Georgia74 pts 74 pts 74
25 Mauritius73 pts 73 pts 73
25 Armenia73 pts 73 pts 73
27 Czech Republic72 pts 72 pts 72
27 Botswana72 pts 72 pts 72
27 Netherlands72 pts 72 pts 72
27 Liechtenstein72 pts 72 pts 72
27 Austria72 pts 72 pts 72
27 Puerto Rico72 pts 72 pts 72
27 Iceland72 pts 72 pts 72
27 Chinese Taipei72 pts 72 pts 72
35 Norway71 pts 71 pts 71
36 Monaco70 pts 70 pts 70
36 Rwanda70 pts 70 pts 70
36 Turks and Caicos Islands70 pts 70 pts 70
39 Lithuania69 pts 69 pts 69
40 Malta68 pts 68 pts 68
40 Uruguay68 pts 68 pts 68
40 Faroe Islands68 pts 68 pts 68
40 Macau68 pts 68 pts 68
40 Bahamas68 pts 68 pts 68
40 San Marino68 pts 68 pts 68
40 Bulgaria68 pts 68 pts 68
40 Trinidad and Tobago68 pts 68 pts 68
40 Anguilla68 pts 68 pts 68
40 Cyprus68 pts 68 pts 68
50 Bahrain67 pts 67 pts 67
50 Barbados67 pts 67 pts 67
50 Panama67 pts 67 pts 67
53 Latvia65 pts 65 pts 65
53 Estonia65 pts 65 pts 65
53 Kosovo65 pts 65 pts 65
53 Belgium65 pts 65 pts 65
53 Curacao65 pts 65 pts 65
53 Andorra65 pts 65 pts 65
53 Uzbekistan65 pts 65 pts 65
53 North Macedonia65 pts 65 pts 65
53 Azerbaijan65 pts 65 pts 65
53 Israel65 pts 65 pts 65
53 Kyrgyzstan65 pts 65 pts 65
53 U.S. Virgin Islands 65
53 American Samoa 65
53 Guam 65
53 Northern Mariana Islands 65
68 Finland64 pts 64 pts 64
69 Qatar63 pts 63 pts 63
69 Korea Republic63 pts 63 pts 63
69 Oman63 pts 63 pts 63
69 Mongolia63 pts 63 pts 63
69 French Guiana 63
69 Réunion 63
69 Martinique 63
69 Guadeloupe 63
77 Ghana62 pts 62 pts 62
77 Namibia62 pts 62 pts 62
77 Aruba62 pts 62 pts 62
77 Brunei62 pts 62 pts 62
77 Thailand62 pts 62 pts 62
77 Kenya62 pts 62 pts 62
77 Jordan62 pts 62 pts 62
77 Sint Maarten62 pts 62 pts 62
77 Saint Vincent and the Grenadines62 pts 62 pts 62
77 Saint Lucia62 pts 62 pts 62
77 Saint Kitts and Nevis62 pts 62 pts 62
77 Costa Rica62 pts 62 pts 62
89 South Africa61 pts 61 pts 61
90 Seychelles60 pts 60 pts 60
90 Uganda60 pts 60 pts 60
90 Saudi Arabia60 pts 60 pts 60
90 Morocco60 pts 60 pts 60
90 Slovenia60 pts 60 pts 60
90 Serbia60 pts 60 pts 60
90 Antigua and Barbuda60 pts 60 pts 60
90 Grenada60 pts 60 pts 60
90 Jamaica60 pts 60 pts 60
90 Albania60 pts 60 pts 60
90 Dominica60 pts 60 pts 60
90 El Salvador60 pts 60 pts 60
90 Philippines60 pts 60 pts 60
90 Saint Pierre and Miquelon 60
90 Tahiti 60
105 Poland59 pts 59 pts 59
105 Slovakia59 pts 59 pts 59
105 Romania59 pts 59 pts 59
105 Montenegro59 pts 59 pts 59
109 Sweden58 pts 58 pts 58
109 Brazil58 pts 58 pts 58
109 Cambodia58 pts 58 pts 58
109 Russia58 pts 58 pts 58
109 Zambia58 pts 58 pts 58
109 Belize58 pts 58 pts 58
109 China58 pts 58 pts 58
109 Mexico58 pts 58 pts 58
109 Palau58 pts 58 pts 58
109 Samoa58 pts 58 pts 58
109 Fiji58 pts 58 pts 58
109 Guatemala58 pts 58 pts 58
109 Indonesia58 pts 58 pts 58
109 Saint-Martin 58
123 Hungary57 pts 57 pts 57
123 Croatia57 pts 57 pts 57
123 Peru57 pts 57 pts 57
123 Tonga57 pts 57 pts 57
127 Colombia56 pts 56 pts 56
128 Nigeria55 pts 55 pts 55
128 Maldives55 pts 55 pts 55
128 Ivory Coast55 pts 55 pts 55
128 Guyana55 pts 55 pts 55
128 Paraguay55 pts 55 pts 55
128 Marshall Islands55 pts 55 pts 55
128 Cape Verde55 pts 55 pts 55
128 Moldova55 pts 55 pts 55
128 Vietnam55 pts 55 pts 55
128 Dominican Republic55 pts 55 pts 55
128 Tajikistan55 pts 55 pts 55
128 New Caledonia55 pts 55 pts 55
128 Papua New Guinea55 pts 55 pts 55
128 Bhutan55 pts 55 pts 55
128 Vanuatu55 pts 55 pts 55
128 Cook Islands 55
128 Mayotte 55
128 Montserrat 55
146 Ukraine53 pts 53 pts 53
147 Gambia52 pts 52 pts 52
147 Senegal52 pts 52 pts 52
147 Kuwait52 pts 52 pts 52
147 Bangladesh52 pts 52 pts 52
147 Spain52 pts 52 pts 52
147 Tanzania52 pts 52 pts 52
147 Malawi52 pts 52 pts 52
147 Portugal52 pts 52 pts 52
147 Turkey52 pts 52 pts 52
147 Niue 52
157 Belarus50 pts 50 pts 50
157 Madagascar50 pts 50 pts 50
157 Burkina Faso50 pts 50 pts 50
157 Mali50 pts 50 pts 50
157 Togo50 pts 50 pts 50
157 Suriname50 pts 50 pts 50
157 Nauru50 pts 50 pts 50
157 Tuvalu50 pts 50 pts 50
157 Tunisia50 pts 50 pts 50
157 Kiribati50 pts 50 pts 50
157 Ethiopia50 pts 50 pts 50
157 São Tomé and Príncipe50 pts 50 pts 50
157 Honduras50 pts 50 pts 50
157 Lebanon50 pts 50 pts 50
157 Micronesia50 pts 50 pts 50
157 Pakistan50 pts 50 pts 50
157 Greece50 pts 50 pts 50
157 Solomon Islands50 pts 50 pts 50
175 Liberia48 pts 48 pts 48
175 Lesotho48 pts 48 pts 48
175 Swaziland48 pts 48 pts 48
175 Zimbabwe48 pts 48 pts 48
175 Egypt48 pts 48 pts 48
175 Sri Lanka48 pts 48 pts 48
175 Nepal48 pts 48 pts 48
182 Benin47 pts 47 pts 47
182 India47 pts 47 pts 47
184 Niger45 pts 45 pts 45
184 Mauritania45 pts 45 pts 45
184 Gabon45 pts 45 pts 45
184 Sierra Leone45 pts 45 pts 45
184 Mozambique45 pts 45 pts 45
184 Bosnia and Herzegovina45 pts 45 pts 45
184 Djibouti45 pts 45 pts 45
184 Timor-Leste45 pts 45 pts 45
184 Wallis and Futuna 45
193 Germany43 pts 43 pts 43
193 Nicaragua43 pts 43 pts 43
195 Cameroon42 pts 42 pts 42
195 Argentina42 pts 42 pts 42
195 Comoros42 pts 42 pts 42
195 Ecuador42 pts 42 pts 42
195 Haiti42 pts 42 pts 42
200 France41 pts 41 pts 41
200 Italy41 pts 41 pts 41
202 Angola40 pts 40 pts 40
202 Congo40 pts 40 pts 40
202 Guinea-Bissau40 pts 40 pts 40
202 Laos40 pts 40 pts 40
202 Palestine40 pts 40 pts 40
202 Iran40 pts 40 pts 40
202 Zanzibar 40
209 Burundi38 pts 38 pts 38
210 Guinea37 pts 37 pts 37
210 Algeria37 pts 37 pts 37
212 Equatorial Guinea35 pts 35 pts 35
212 Central African Republic35 pts 35 pts 35
212 Congo DR35 pts 35 pts 35
212 Libya35 pts 35 pts 35
212 Bolivia35 pts 35 pts 35
212 Myanmar35 pts 35 pts 35
212 Western Sahara 35
219 Chad33 pts 33 pts 33
219 Sudan33 pts 33 pts 33
219 Iraq33 pts 33 pts 33
222 Yemen30 pts 30 pts 30
222 Syria30 pts 30 pts 30
222 Cuba30 pts 30 pts 30
222 Turkmenistan30 pts 30 pts 30
222 Eritrea30 pts 30 pts 30
222 Afghanistan30 pts 30 pts 30
228 South Sudan25 pts 25 pts 26
228 Somalia25 pts 25 pts 26
230 Venezuela22 pts 22 pts 23
231 Korea DPR5 pts 5 pts 6