SDG 8 · Indicator
Labour freedom score
Ratings provide a visual representation of a country’s performance on the indicator.
Significant challenges remain
Major challenges remain
The labor freedom component is a quantitative measure that considers various aspects of the legal and regulatory framework of a country’s labor market, including regulations concerning minimum wages, laws inhibiting layofs, severance requirements, and measurable regulatory restraints on hiring and hours worked, plus the labor force participation rate as an indicative measure of employment opportunities in the labor market. Seven quantitative sub-factors are equally weighted, with each sub-factor counted as one seventh of the labor freedom component: Ratio of minimum wage to the average value added per worker, Hindrance to hiring additional workers, Rigidity of hours, Difficulty of firing redundant employees, Legally mandated notice period, Mandatory severance pay, and Labor force participation rate. (https://www.heritage.org/index/pdf/2021/book/02_2021_IndexOfEconomicFreedom_METHODOLOGY.pdf)
The long-term objective for this indicator is a value of .
The Heritage Foundation