Welfare state had greater impact on the workings of the labour market. Various factors such as provisions of the welfare state along with sticky and inflexible wages have decommodified the interest of workers, replacement of contract with status and property rights with citizen rights. Supply problem has been recognized as the central problem on the labour market of how to hire and fire the right candidate at the right place, most importantly with the right wage rate and motivation. Hence, decommodification was simply understood as a process of exemption from pure labour market forces.
However as a result of access to benefits that is paid by the state as a substitute for wage, labour power might a little decommodified. Also it has direct access to services provided by the state. in the UK benefits and social insurance was provided very low replacement of earnings with no time limitation and have been uniform for the entire nation that made the labour market very significant for decommodification (Ginsberg, 1992)