|Printable version||E-mail this to a friend|
IEA - Labour market intervention may do more harm than good
Reaction to Conservative Party announcement on employment regulations
“Intervention of this kind will lead to increased costs and threaten to undermine the UK’s comparatively high employment rate – largely a result of our flexible labour market. Brexit should be used as an opportunity to reduce the burden of regulation in this sector, not to increase it.
“The costs of increased rights for some will initially be borne by companies, but will be passed on to workers and consumers in the form of lower wages and higher prices. Anything that makes it more expensive to employ people will make it harder for the unemployed to find jobs – harming the young, unskilled and those outside of work the most.
“While critics allege that flexible forms of working are open to exploitation, the few hard cases of this should not be used to justify blanket intervention that reduces the choices available to all. Particularly when there is little evidence that workers in more flexible forms of employment are any more vulnerable or less content than those on more conventional contracts.
“Finally, these seemingly harmless proposals will open the door to more and more legislation. Linking the minimum wage to average earnings may result in smaller increases than might otherwise have happened, but future Chancellors will be tempted to ratchet this higher.”
Notes to editors:
For media enquiries please contact Nerissa Chesterfield, Communications Officer: firstname.lastname@example.org or 020 7799 8920 or 07791 390 268.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
Latest News from
Adam Smith Inst - The European Commission fining Google will end up hurting users in a misguided quest to help them29/06/2017 15:35:00
On Tuesday 27th June it was announced that the European Commission had fined Google €2.42bn for breaching EU antitrust laws. The Adam Smith Institute is damning in its criticism of that ruling.
Civitas - Exchange rate policy needed to rejuvenate industry post-Brexit29/06/2017 14:35:00
The government should adopt an explicit exchange rate target designed to keep the pound close to parity with the dollar as part of a major restructuring of the economy after Brexit, a new Civitas book argues.
Demos - Sheltered housing saves the NHS and social care services £486m+ per year29/06/2017 13:35:00
A new report from cross-party think tank Demos urges the Government to exclude older people’s housing from proposals to cap Housing Benefit for people in sheltered housing, finding that sheltered housing saves the UK’s cash-strapped NHS and social services at least £486m per year.
Civitas - The government’s industrial strategy risks undermining post-Brexit economy29/06/2017 12:35:00
New Civitas pamphlet says industrial strategy will fail to halt deindustrialisation and does nothing to capitalise on the opportunities from leaving the EU.
Civitas - Government support for domestic supply chains will be critical to manufacturing post-Brexit29/06/2017 11:35:00
A key part of the government’s industrial strategy should be a fund to support UK manufacturing supply chains to offset the impact of any new trade barriers that arise from leaving the single market, a new Civitas report argues.