Title page 1

Contents 3

Summary 1

About the publication 2

Introduction 4

How labour markets work 5

Increased employment regulation 6

New domestic legislation 8

Court or tribunal judgements 8

Occupational regulation 9

Other labour market impacts of government policy 9

Taxation and benefits 9

Higher education policy 10

Training and apprenticeships 11

Housing policy 12

Informal pressures 12

The rise of HR culture 12

Gumming up the works: the impact of regulation 13

Wages 13

Adjustment processes 15

Mandates, uncertainty and the business of business 16

References 18

Figure 1. Annual percentage change in UK output per hour worked 2000-25 4

Figure 2. The Heritage Foundation's Labor Freedom Index 2000-25 7