How to Create New Jobs

Following the COVID-19 lockdown, the UK labour market faces much higher unemployment and reductions in labour force participation. Such measures as the Coronavirus Job Retention Scheme and the Self-employment Income Support Scheme served a useful purpose, but governments cannot keep businesses on life support indefinitely. Job protection measures risk substantial harm if they hinder the adjustment of the labour market to changing conditions. Direct government interventions to "create jobs" can be costly and are rarely successful in generating multiplier effects.Before the pandemic, the UK was doing well in generating new private sector jobs, and allowing markets for goods and services to operate freely could restore and enhance the conditions, under which job creation can be maximised. Some deregulation of land-use planning has been announced, but the government could also consider liberalising employment law: scrapping much occupational licensing, reforming minimum wages, and ending the apprenticeship levy