The Chartered Institute of Personnel and Development (CIPD) has released a new analysis of the economics of employment regulation.
The economic rights and wrongs of employment regulation, a new Work Horizons report supports the coalition government’s mostly sensible better regulation agenda. However it also questions the case for the kind of wholesale ‘drive to deregulate’ advocated by sections of the business lobby.
The report finds that job creation potential is strong, and only requires more buoyant demand conditions in the economy to be fulfilled.
Dr John Philpott, Chief Economic Adviser at the Chartered Institute of Personnel and Development (CIPD) comments: “A balanced assessment shows that underlying problems of structural unemployment and productivity shortfalls in the UK economy cannot be attributed to any negative impact of employment regulation, but are due instead to relatively low rates of capital investment, long-standing deficiencies in the supply and quality of work related skills, poor management of available skills in the workplace, and work disincentives stemming from the operation of the welfare benefit system.
“Further de-regulation of an already relatively de-regulated labour market will do nothing to help solve these structural problems and might well exacerbate them.”