Study On Contemporary United Kingdom Labor Market Reforms

The thesis presents positive study on Britain's labor-market reforms from 1980s. The paper is composed of four chapters.Chapter one: IntroductionThe introduction summarizes the significance of this subject, the definitions of related terms, literature review, research methods, research difficulties and the possible innovations.Chapter two: review of United Kingdom's unemployment from 1970sSince 1970s, United Kingdom unemployment has became more serious. Unemployment has three features: periodical unemployment peaks, high long-term unemployment rates, high youth unemployment rates, unemployment was inconsistent with economic cycle. Two probably factors accounted for high Unemployment, one was circle factor, the other was labor market's rigidity.Chapter three: Britain's labor-market reformsTo solve serious unemployment problem, UK government has reformed its labor market since early 1980s. Reforms consisted of two main components: labor-market flexibility reform and active labor market policies. A series of employment laws reduced trade unions'bargaining power, Wage councils were abolished, Welfare benefits reduced in relative terms and eligibility tightened, Family credit was introduced and then Working Family Tax Credit followed. These initiatives were a major component of government efforts to strengthen labor market flexibility. At that time, many active labor market policies were performed as follows: Job Search Assistance Programmes, Job Training Programmes and Temporary Jobs Created Programmes.Chapter four: Evaluations of UK labor-market reformsSince early 1980s, UK labor market has largely changed. Especially after 1993, labor market performance has continued to improve. Labor market has been flexible more and more; flexible employment has dramatically increased; high unemployment rate has fallen sharply to reach 4.7 percent of the labor force, which is the lowest point from 1975;Employment stably increases. In short , UK labor market reforms has succeed. Some beneficial lessons can be drawn from UK labor market reforms: reforms have initiated early, extensively and thoroughly; government highlighted public employment service; ALMP has targeted small disadvantaged people, especially young and long-term unemployed.However, at same time, UK household incomes inequality and poverty has significant increased between 1970s and 1990s.