How do flexible labor markets contribute to the segmentation of the labor market?

Flexible labor markets allow companies to hire and fire workers easily based on changing needs, which can lead to a divide in the job market. On one side, there are stable, full-time jobs with good benefits and job security, often held by workers with specific skills or education. On the other side, there are part-time, temporary, or low-wage jobs that lack benefits and security, which many workers may have to take due to economic necessity. For example, a company might hire seasonal workers for busy times while keeping a core group of full-time employees, creating a clear separation in job quality. This segmentation can make it harder for those in lower-paying jobs to move up to better positions, reinforcing economic inequalities.