http://www.bized.co.

uk

Influences on the Labour Market

Copyright 2005 Biz/ed

http://www.bized.co.uk

Influences on the Labour Market

Copyright 2005 Biz/ed

http://www.bized.co.uk

Government

Copyright 2005 Biz/ed

http://www.bized.co.uk

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
Copyright 2005 Biz/ed

http://www.bized.co.uk

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

Copyright 2005 Biz/ed

http://www.bized.co.uk

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!

Copyright 2005 Biz/ed

http://www.bized.co.uk

Trade Unions

Copyright 2005 Biz/ed

http://www.bized.co.uk

Trade Unions
Less popular Less relevant in service industries Decline of national bargaining Impact of changing work practices and legislation New role for trade unions
Copyright 2005 Biz/ed

Trade union power was affected by successive legislation passed during the 1980s and 1990s. The Miners Strike headed by Arthur Scargill in 1984, proved to be a watershed in trade union history. But, is militancy rising again?
Title: Arthur Scargill. Copyright: Getty Images, available from Education Image Gallery

http://www.bized.co.uk

External Influences

Copyright 2005 Biz/ed

http://www.bized.co.uk

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 Social Trends women in the workplace, worklife balance, work ethic

The working environment and attitudes to work have changed the labour market for good?
Title: Book Keeping. Copyright: Getty Images, available from
Education Image Gallery

Copyright 2005 Biz/ed

http://www.bized.co.uk

Market Power

Copyright 2005 Biz/ed

http://www.bized.co.uk

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
Copyright 2005 Biz/ed