Labour reforms are often viewed as means to improve economic performance and increase welfare. Changes in employment laws that lower the costs of hiring workers (and of firing them) should foster job creation and help firms recover from shocks.

What is Labour market reforms in economics?

The process of labour market reforms and marketization caused two opposite impacts on public and private sector workers. Workers in SOEs experienced lay-offs following the government's decision to abandon its lifelong employment system and increase flexible labour market policies.

What is labour reform?

Labour reforms essentially mean taking steps in increasing production, productivity, and employment opportunities in the economy in such a manner that the interests of the workers are not compromised. ... Labour reforms also include labour law reforms” (INDIA 2006; p 601, GOl Publication Division).