The paper argues that the concept of signalling as a remedy for asymmetric information, though originating in orthodox economics, has high relevance for evolutionary theories of industrial dynamics. A model is suggested that combines the classic results from models of labour market signalling with a a process of competition, where firms compete to reach an exogenously determined scale with the lowest labour costs. These costs, in turn, are determined by the firms' ability to decipher the signals in the labour market. The model is implemented as a computer programme and some preliminary results are presented. These show that, under some market conditions, firms that seem to outsiders to have inert organisational structures are in effect relatively effective at minimizing labour costs. While under other conditions the best strategy for minimizing labour costs includes frequent adaptation of the organisation and a high labour turnover.