Abstract
Since the Labor Party returned to power in 1997, a substantial increase in employment regulation has occurred in the United Kingdom. Britain has enacted new laws on labor union recognition, introduced a national minimum wage, enhanced employment protection legislation, strengthened anti-discrimination legislation, and imposed many new obligations on employers. Employment regulation should not, however, be looked at in isolation. The potential for job loss implicit in some of the Blair administrations’ regulation has been offset by other factors which have broadly supported labor market flexibility. This does not mean that further regulation can be imposed with impunity. Although the UK labor market continues to perform better than those of the large continental European economies, its competitiveness may be slipping. When Mr. Blair retires, the prospects may deteriorate.
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