The Labour Market

Abstract

The Conservative government which came into office in 1979 envisaged a long period, some 10 years, over which the reforms of the British economy would be undertaken. The reforms embraced fiscal stability; deregulation of the economy; privatisation of the nationalised industries; and the reduction of trade union powers. The first three of these issues are dealt with in detail elsewhere in this book, but all have a bearing upon the efficiency of the labour market. The pursuit of fiscal stability has, for example, led to a reduction of aggregate demand with repercussions on the demand for labour, whilst the pursuit of tax cuts has had implications for incentives and the supply of labour. Deregulation has led to a modification of the operation of minimum wage legislation and to a reconsideration of policies which had been designed to eliminate casual labour in the ports. Privatisation has meant the intrusion of commercial criteria into the operations of some industries and the abandonment of nationalisation as a means of income redistribution and stabilisation.