Influences On The Labour Market

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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 Copyright 2005 – Biz/ed

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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

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

• 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

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External Influences

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External Influences

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

• 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 Copyright 2005 – Biz/ed

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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 Copyright 2005 – Biz/ed