These policies are designed to improve the quality and quantity of the supply of labour
The UK labour market is one that has to contend with a wide range of problems many of which are related to persistently high rates of unemployment. Some of these weaknesses are mentioned in the graphic below.
Supply side labour market reforms are designed to improve the employment prospects for workers of different ages, in different occupations and industries and in different regions of the country.
Structural Weaknesses in the UK Labour Market
Trade Union Reforms
Increased Spending on Education and Training
Economists disagree about the scale of the likely economic and social returns to be earned from higher spending on education – but few of them deny that “investment in education" has the potential to raise the skills within the work force and improve the employment prospects of thousands of unemployed workers.
Income Tax Reforms and the Incentive to Work
Zero hours contracts
Zero-hours contracts do not guarantee a minimum number of hours of employment.
The most recent data in the UK found that just under 700,000 workers said they were on a "zero-hours contract" in their main job between October to December 2014. This represents 2.3% of all people in employment.
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