How effective is the labor market policy or program in preventing a sudden increase in the unemployment rate despite the globalization? Lastly, how does globalization affect the distribution of Income in general?To be able to answer the research question, this paper will include several kinds of literature that are categorized as economic journals. With the use of HighWire – for journals, google, and yahoo search engines, it is possible to answer the main question or hypothesis of the topic research.Economics journal coming from the Journal of Industrial Relations (JIR), European Union Politics, and Inaugural Article Economic Sciences will be used in addressing the research questions and eventually derive the conclusion from the related literature that was gathered from the research activity.This paper will discuss several external factors that could affect the flexibility of the work market. External factors such as employment protection, wage flexibility, internal or functional flexibility, and the supply side flexibility will be explained one by one in the literature portion. Knowing which of these factors contributes more to increasing the unemployment rate as well as being able to determine whether globalization has a positive or negative influence on the employment rate will make it easier for us to manage, control, and avoid a high unemployment rate in the European countries.Also, through intensive research, we will be able to answer the question of how globalization could affect the distribution of Income in general. In line with this topic, the research will focus on determining whether people, in general, are economically better off as part of the effect of globalization or not. Unequal distribution of income is another way of telling us that the gap between the rich and the poor is becoming wider. This is also true in the case of a third world and a developed country.