Employing Workers

This topic measures the flexibility of labor regulations. It examines the difficulty of hiring a new worker, rigidity of rules on expanding or contracting working hours, the non-salary costs of hiring a worker, and the difficulties and costs involved in dismissing a redundant worker.

The table below shows the main indicators. They include:
  • difficulty of hiring a new worker (Difficulty of Hiring Index),
  • restrictions on expanding or contracting the number of working hours (Rigidity of Hours Index),
  • difficulty and expense of dismissing a redundant worker (Difficulty of Firing),
  • an average of the three indices (Rigidity of Employment Index), and
  • cost of a redundant worker, expressed in weeks of wages (Firing Costs).
Higher values in the table indicate more rigid regulations.

To see the details for a specific economy, use the dropdown box on the right or click on the links below.  Click on column headers to sort data.

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Research

The Regulation of Labor (PDF, 270KB), by Botero and others, Quarterly Journal of Economics, June 2004.
Region or EconomyDifficulty of Hiring IndexRigidity of Hours IndexDifficulty of Firing IndexRigidity of Employment IndexNonwage labor cost (% of salary)Firing costs (weeks of wages)
East Asia & Pacific19.220.819.219.79.437.8
Eastern Europe & Central Asia36.351.432.140.025.426.1
Latin America & Caribbean36.935.524.532.312.756.1
Middle East & North Africa25.842.431.233.114.855.6
OECD25.239.227.930.820.725.7
South Asia23.617.540.027.06.766.0
Sub-Saharan Africa41.743.942.242.612.368.3
Afghanistan040302300
Albania444020352256
Algeria446040482717
Angola78607069858
Antigua and Barbuda1102010952
Argentina4460204126139
Armenia334020311913
Australia00103204
Austria11604037312
Azerbaijan334040382222
Bangladesh442040350104
Belarus04040273922
Belgium114010205516
Belize2220014424
Benin394040402936
Bhutan00207110
Bolivia78601007914not possible
Bosnia and Herzegovina674030461531
Botswana0204020090
Brazil78600463737
Brunei0200754
Bulgaria17601029239
Burkina Faso836040612034
Burundi33603041726
Cambodia44603045039
Cameroon284070461633
Canada110041328
Cape Verde334060441791
Central African Republic726050611822
Chad396040462136
Chile33202024352
China112040244491
Colombia224020272959
Comoros396040460100
Congo, Dem. Rep.72807074731
Congo, Rep.786070692933
Costa Rica56400322635
Côte d'Ivoire336020381849
Croatia614050501739
Czech Republic334020313522
Denmark020101010
Djibouti674030461656
Dominica11202017758
Dominican Republic56400321488
Ecuador4460505112135
Egypt020602725132
El Salvador33400241586
Equatorial Guinea6760706623133
Eritrea0402020069
Estonia338060583335
Ethiopia33403034040
Fiji222001492
Finland446040482626
France676040564732
Gabon178080592043
Gambia0403023119
Georgia02007204
Germany336040441969
Ghana2240503713178
Greece448040552824
Grenada4420021529
Guatemala444002813101
Guinea336030412726
Guinea-Bissau676070662287
Guyana33202024856
Haiti22400211117
Honduras89400431074
Hong Kong, China0000562
Hungary08010303435
Iceland334010281213
India02070301756
Indonesia720604410108
Iran116050402391
Iraq33602038120
Ireland112020171124
Israel1160024691
Italy33404038372
Jamaica110041261
Japan0203017134
Jordan11206030114
Kazakhstan0402020149
Kenya3303021447
Kiribati00501784
Korea116040371391
Kuwait0400131178
Kyrgyz Republic334040382117
Lao PDR11406037519
Latvia504040432417
Lebanon44030252217
Lesotho22401024044
Liberia33204031584
Lithuania338030483130
Luxembourg678040621339
Macedonia, FYR616030503326
Madagascar896040631830
Malawi5602025184
Malaysia0030101575
Maldives000009
Mali334040382831
Marshall Islands0000110
Mauritania564040451631
Mauritius0205023635
Mexico334070482152
Micronesia2200760
Moldova334040382837
Mongolia2280034209
Montenegro334040381839
Morocco1004050631985
Mozambique836020544143
Namibia0402020024
Nepal672070521090
Netherlands174070421817
New Zealand11010710
Nicaragua22600271724
Niger1006050701731
Nigeria00207950
Norway614040471413
Oman3340024114
Pakistan782030431190
Palau1100460
Panama786070691944
Papua New Guinea11200101039
Paraguay5660605917113
Peru446060551052
Philippines56203035791
Poland116040372113
Portugal336050482495
Puerto Rico4402021130
Romania78804066318
Russia336040443117
Rwanda56403042526
Samoa112001069
São Tomé and Principe50806063691
Saudi Arabia0400131180
Senegal726050612138
Serbia674030461825
Seychelles332050342539
Sierra Leone4460505110189
Singapore0000134
Slovakia176030363513
Slovenia786050631940
Solomon Islands11202017844
South Africa56403042424
Spain786030563356
Sri Lanka020602715169
St. Kitts and Nevis11202017108
St. Lucia02007556
St. Vincent and the Grenadines11202017454
Sudan3920503617118
Suriname0205023026
Swaziland11202017253
Sweden176040393226
Switzerland04010171513
Syria224050371780
Taiwan, China674040491391
Tajikistan338040512522
Tanzania894060631632
Thailand3320018654
Timor-Leste33205034017
Togo616040542536
Tonga0200700
Trinidad and Tobago00207367
Tunisia284080492217
Turkey564030422295
Uganda001031013
Ukraine446030453813
United Arab Emirates0600201384
United Kingdom1101071122
United States000080
Uruguay3360031631
Uzbekistan334030342522
Vanuatu22401024456
Venezuela78601007916not possible
Vietnam04040271787
West Bank and Gaza33402031091
Yemen0604033917
Zambia334030349178
Zimbabwe04060334446