ABSTRACT:Structural change has been a necessary feature of the historical growth in real output and improved living standards and re‐allocation of labour is essential if economic growth and new job creation are to result in a significant reduction in unemployment. Our societies have evolved to a point at which the State is expected to facilitate industrial activity and at which it is simply unacceptable that people should be left to struggle unaided against adversities resulting from the play of markets. Effective and equitable adjustment raises a whole range of issues for the employing enterprise, the State, and for trade unions. The policies and procedures followed are, and should be, complementary but the mix varies appreciably between countries. Here, the author deals first with what happens in the enterprise and then with the range of possible policie