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uk

Influences on the Labour Market

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Influences on the Labour Market

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Government

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Government Influence
• Government policy in a wide variety of
areas has a significant influence
• Influences the demand and supply of
labour in direct or indirect ways
• Increasing regulation of the labour
market seen as being damaging by
some
• Businesses claim legislation and taxes
depress the demand for labour

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Employment Legislation
– Equal Pay
– Sex Discrimination
– Disability
– Health and Safety
– Benefits in Work
– Pension Rights
• Necessity of meeting legislation imposes
additional costs on businesses – shifts the
demand for labour to the left

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EU Policy

• Social Chapter
– Specifies various employment rights and
responsibilities
– More rules and regulations for employers to meet
– Claim that it makes the labour market less flexible
– Imposes additional costs on employers again
• Working Time Directive
– Again – limits employer flexibility
– Raises cost!

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Trade Unions

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Trade Unions
• Less popular
• Less relevant in
service industries
• Decline of national
bargaining
• Impact of changing
Trade union power was affected by successive
legislation passed during the 1980s and 1990s.
work practices and
The Miners’ Strike headed by Arthur Scargill in
1984, proved to be a watershed in trade union
legislation
history.
But, is militancy rising again?
• ‘New’ role for trade
Title: Arthur Scargill. Copyright: Getty Images, available from
Education Image Gallery
unions

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External Influences

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External Influences
• Working environment
has changed
• Workers need to be more
flexible
• ‘Job for life’ unlikely
• Migration trends will
affect labour market
• Technology and transport
change the way we work
The working environment and attitudes to work • Social Trends – women
have changed the labour market – for good?
in the workplace, work-
Title: Book Keeping. Copyright: Getty Images, available from
Education Image Gallery life balance, work ethic

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Market Power

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Market Power
• Extent of market power in the labour
market
• Public Sector workers – less market
power – pay determined by government
• Monopsony buyers of labour – health
service, education?
• Local negotiation in the workplace –
who has the power?
• Extent of information and knowledge
available to the employer and employee
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