Labor Freedom Index: Index measuring the level of labor freedom and flexibility

The Labor Freedom Index measures the level of labor freedom and flexibility in different countries, taking into account factors such as employment regulations, minimum wage laws, and worker rights. This index provides insights into the ease of hiring and firing, flexibility of work arrangements, and overall labor market efficiency. Staying informed with this index helps in understanding the dynamics of labor markets and their impact on business competitiveness and job creation.

As of January 2020, Singapore ranked first in the Labor Freedom Index with a score of 90.9, indicating a high level of labor freedom and flexibility. Brunei secured the second position with a score of 90.5, followed by Hong Kong at 89.1. On the other hand, Cuba, Turkmenistan, and North Korea scored 20, 20, and 5, respectively, reflecting lower levels of labor freedom and flexibility.

In January 2021, Singapore maintained its first-place position with a slightly increased score of 91.5, indicating a continued high level of labor freedom. Brunei retained the second position with a score of 90.9, while the United States secured the third position with a score of 87.1. Cuba, Turkmenistan, and North Korea maintained their scores of 20, 20, and 5, respectively.

Moving to January 2022, Micronesia claimed the top position in the Labor Freedom Index with a score of 81.5, showcasing a significant level of labor freedom and flexibility. Austria secured the second position with a score of 78.4, followed by Singapore at 77. Austria and Singapore's scores indicate a relatively high level of labor freedom. Turkmenistan, Cuba, and North Korea scored 30.7, 20, and 5, respectively, reflecting lower levels of labor freedom and flexibility.

As of January 2023, Micronesia maintained its first-place position with an increased score of 82, signifying a high level of labor freedom and flexibility. Austria ranked second with a score of 78.8, while Singapore secured the third position with a score of 77.3. Somalia, Cuba, and North Korea scored 26.5, 20, and 5, respectively, reflecting lower levels of labor freedom and flexibility.

Monitoring the Labor Freedom Index provides insights into the labor market dynamics, flexibility of work arrangements, and overall labor market efficiency in different countries. It helps individuals, businesses, and policymakers assess the regulatory environment, labor market flexibility, and job creation potential, supporting informed decision-making and promoting a favorable business environment.

Labor Freedom Index By Country January 2023 (Index, January 2023)

Country Index
1 Micronesia 82
2 Austria 78.8
3 Singapore 77.3
4 United States 76.3
5 Brunei 75.2
6 Slovenia 74.4
7 Guyana 73.8
8 Nigeria 73.6
9 South Africa 71.6
10 New Zealand 71.5
11 Samoa 71.3
12 Italy 70.6
13 Norway 69.2
14 Taiwan 69.1
14 Mauritius 69.1
15 Canada 69
16 Bahamas 68.6
17 Serbia 68.1
18 Iceland 67.7
19 Mongolia 67.5
20 Japan 66.8
21 Cyprus 66.5
22 Sweden 65.9
23 Fiji 65.8
24 Finland 65.5
24 Kiribati 65.5
25 Papua New Guinea 65.2
26 Romania 65.1
27 Denmark 64.8
27 Trinidad and Tobago 64.8
28 Slovakia 64.7
28 Australia 64.7
29 United Arab Emirates 64.5
30 Jamaica 64.4
30 Suriname 64.4
31 Bulgaria 63.8
32 Namibia 63.3
33 Kazakhstan 62.7
33 Malta 62.7
34 Latvia 62.6
34 Barbados 62.6
35 Tanzania 62.4
36 Botswana 62.3
36 Seychelles 62.3
37 United Kingdom 62.2
38 Georgia 62.1
38 Spain 62.1
39 Estonia 61.9
40 Burkina Faso 61.8
41 Colombia 61.7
42 Montenegro 61.6
43 Hungary 61.3
44 Ireland 61.2
45 Panama 61
46 Solomon Islands 60.9
47 Uruguay 60.8
48 Belize 60.7
48 Greece 60.7
49 Bosnia and Herzegovina 60.6
50 Switzerland 60.5
51 Lithuania 60.2
52 Benin 60
53 Indonesia 59.5
53 Dominica 59.5
54 Chile 59.4
55 Netherlands 59.3
56 France 59.2
57 Armenia 58.7
58 Saint Vincent and the Grenadines 58.5
59 Croatia 58.3
59 Peru 58.3
60 Costa Rica 58.1
60 India 58.1
61 Malaysia 58
62 Lesotho 57.9
63 Belgium 57.8
64 Mexico 57.7
64 Russia 57.7
65 Philippines 57.5
66 Jordan 57.4
67 Saint Lucia 57.3
68 Kenya 57.1
69 Brazil 57
70 Israel 56.9
70 Malawi 56.9
71 Iraq 56.8
71 Luxembourg 56.8
72 Thailand 56.6
72 Guinea-Bissau 56.6
72 Bhutan 56.6
73 Timor-Leste 56.5
73 Ecuador 56.5
74 Ivory Coast 56.4
75 Madagascar 56.2
75 South Korea 56.2
76 Tonga 56.1
76 Czech Republic 56.1
77 Azerbaijan 55.8
77 Sri Lanka 55.8
77 Ghana 55.8
77 Tunisia 55.8
78 Comoros 55.6
79 Poland 55.4
79 Gabon 55.4
80 China 55.2
81 Portugal 55.1
81 Haiti 55.1
81 Argentina 55.1
82 Turkey 54.9
82 Eswatini 54.9
83 Uganda 54.7
84 El Salvador 54.6
85 DR Congo 54.4
85 Mali 54.4
86 Niger 54.1
86 Vietnam 54.1
87 Senegal 54
88 Angola 53.9
89 Bahrain 53.6
90 Chad 53.4
90 Kosovo 53.4
91 Lebanon 53.3
92 Dominican Republic 53
93 Germany 52.8
94 North Macedonia 52.7
95 Qatar 52.6
96 Kyrgyzstan 52.1
96 Kuwait 52.1
97 Cape Verde 51.9
97 Togo 51.9
98 Pakistan 51.6
99 Nepal 51.5
100 Algeria 51.4
101 Eritrea 51.2
102 Djibouti 50.8
103 Iran 50.7
104 Guatemala 50.1
105 Guinea 50
105 Maldives 50
106 Albania 49.7
107 Mauritania 49.3
108 Libya 48.6
109 Uzbekistan 48.1
110 Cambodia 47.9
111 Mozambique 47.8
112 Morocco 47.6
113 Equatorial Guinea 47.4
113 Gambia 47.4
114 Belarus 47.1
115 Nicaragua 47
116 Bangladesh 46.8
117 Cameroon 46.7
118 Moldova 46.6
119 Syria 46.5
120 Oman 45.7
121 Myanmar 45.6
122 Afghanistan 45.1
123 Bolivia 44.9
124 Laos 44.5
125 Republic of the Congo 43.6
125 Tajikistan 43.6
126 Liberia 43.3
127 Rwanda 42.8
128 Saudi Arabia 42.5
129 Zambia 42.1
130 Sudan 42
131 Burundi 41.8
132 Sao Tome and Principe 41.7
133 Vanuatu 40.1
134 Central African Republic 39.8
135 Paraguay 39.5
136 Ethiopia 39.1
137 Honduras 38.4
138 Sierra Leone 38.3
139 Zimbabwe 35.4
140 Venezuela 34.3
141 Egypt 33.4
142 Turkmenistan 31.4
143 Yemen 30.7
144 Somalia 26.5
145 Cuba 20
146 North Korea 5

Data from The Heritage Foundation

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