Labour Market

Government must cut regulation to spur growth

The IEA responds to the latest unemployment figures

Commenting on today’s unemployment figures, Prof Philip Booth, Editorial and Programme Director at the Institute of Economic Affairs, said:

“The fall in unemployment is welcome. However, we are not seeing the speed of recovery that Britain has experienced after previous recessions.

“Though problems within the banking sector and the paralysis within the Eurozone are clearly making life very difficult for British businesses, this is no reason for the government to add to its problems. Instead of governments increasing regulation on business through, for example, the temporary workers’ directive, the imposition of the National Employers’ Savings Trust scheme and, as announced in the Queen’s speech, changes to maternity leave, the government should be doing everything it can to reduce regulation. This is essential if growth, productivity and employment are to undergo the pattern of rapid increases that we have seen after previous recessions.”

Notes to editors

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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.

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