Even more reassuring is the picture in Chart 8, which suggests that this has been matched by a revival in employment levels. I believe that the increasing flexibility in wage contracts that was seen in Chart 6 has something to do with this revival.
Wage flexibility allows both the downside and upside of the business cycle to be shared between the employee and the employer. To that extent, it makes hiring people more attractive, which is, after all, the ultimate goal. 6  BIS Review 42/2010  The components of a strategy I have spoken about a simple principle and some simple arithmetic.