Ten years ago Germany’s left-leaning Social Democratic Party introduced bold labour market reforms that created 2.5 million new jobs and revived the ailing economy. In the UK however, the Labour party appears unwilling to follow the example of their German counterparts.
Ignoring the SPD’s success, Ed Miliband has instead proposed an eclectic mix of misguided labour market policies:
In a new report The Hartz Reforms …and their lessons for the UK, published by the Centre for Policy Studies on Friday 31 October, author Glyn Gaskarth warns that if UK employment success is to continue politicians must learn from the SPD’s example and get serious about labour market reform:
Tim Knox, Director of the Centre for Policy Studies comments:
“The importance of the Hartz Reforms cannot be underestimated. Germany has since reversed some of the reforms and its economy is suffering. British politicians of all stripes must heed the warning and ensure that effective long-term labour market reform is a priority.”