Adapting to the Recession: Labour Force Changes and Labour Costs Reductions

Abstract

This paper will examine two aspects of the labour market flexibility, namely the ability of the workplaces to adjust their workforce and to reduce their relative labour costs. The survey covers the period ending in May 1991 during which firms faced considerable economic uncertainty and financial pressure. As with the above studies it confirms that considerable flexibility existed in the New Zealand labour market prior to the Employment Contracts Act.