Abstract: A flexible multilayer label adapted for application to deformable thermoplastic packages, with such label being impervious to water and sufficiently resilient to avoid permanent deformation upon deflection. The label includes a thermoplastic stress-compensating stratum having a relatively elastic structure which has a Young's Modulus less than about 2800 Kg/cm.sup.2 and a lower surface adapted to be bonded to the outer surface of the thermoplastic package during in-mold labeling procedures. The label further includes a thermoplastic label stratum having a Young's Modulus which exceeds about 7030 Kg/cm.sup.2 and a smooth label surface. The label stratum is laminated to the upper surface of the stress-compensating stratum. The stress-compensating stratum structure accommodates the thermal stresses and package shrinkage inherent in such in-mold labeling procedures, as well as stresses imposed by deformation of the package in use.