Political Snapshot of The British Ruling Parties

The impact of Conservative and New Labour policies on the job market from 1980 to 2022.

Conservative Government (1980-1997):

Monetarism and Privatization: Under Margaret Thatcher's Conservative government, policies of monetarism and privatization were implemented to curb inflation and reduce the role of the state in the economy. While these policies aimed to promote efficiency and economic growth, they often resulted in job losses, particularly in industries previously owned or heavily regulated by the government, such as coal mining, steel production, and public transportation.


Deindustrialization: The 1980s saw a significant decline in traditional manufacturing industries in the UK, leading to widespread job losses in regions heavily reliant on these sectors, such as the North of England and South Wales. The closure of coal mines and steel plants, for example, resulted in the loss of thousands of jobs and had long-lasting socio-economic consequences for affected communities.


Rise of the Service Sector: Concurrently, there was a shift towards a service-based economy, with growth in industries such as finance, technology, and professional services. While this shift created new job opportunities, it also contributed to disparities in income and employment between regions and socio-economic groups.

New Labour Government (1997-2010):

Modernization and Investment: The New Labour government, led by Tony Blair, sought to modernize the economy and invest in education, healthcare, and infrastructure. Policies such as the New Deal aimed to reduce unemployment by providing training and support for job seekers, particularly youth and long-term unemployed individuals.


Minimum Wage and Workers' Rights: New Labour introduced the National Minimum Wage in 1999, which aimed to improve standards of living for low-paid workers. Additionally, measures were implemented to strengthen workers' rights and promote workplace equality, such as the introduction of paternity leave and the Equality Act 2010.


Financial Deregulation: While New Labour continued some of the economic policies of previous Conservative governments, such as maintaining fiscal discipline and promoting market competition, it also pursued financial deregulation, which contributed to the growth of the financial services industry. However, this reliance on the financial sector left the economy vulnerable to the global financial crisis of 2008, resulting in job losses and economic downturn.

Post-2010 Period:

Austerity Measures: Following the global financial crisis, the Conservative-led coalition government implemented austerity measures aimed at reducing public spending and tackling the budget deficit. These measures included cuts to public sector jobs and services, which disproportionately affected vulnerable groups and regions with already limited job opportunities.


Brexit Impact: The decision to leave the European Union (Brexit) in 2016 had significant implications for the UK economy and job market. Uncertainty surrounding trade relations and immigration policies led to concerns among businesses, resulting in some companies relocating operations or downsizing, particularly in sectors reliant on EU trade and migrant labor.


COVID-19 Pandemic: The outbreak of the COVID-19 pandemic in 2020 further exacerbated challenges in the job market, with widespread job losses across various sectors due to lockdowns, restrictions, and economic downturn. Government support schemes, such as the furlough scheme, helped mitigate some of the immediate impacts, but long-term recovery remains uncertain.

In summary, the period from 1980 to 2022 witnessed significant shifts in the UK job market influenced by political and economic policies implemented by both Conservative and New Labour governments. While some policies aimed to promote economic growth and modernization, others resulted in job losses and socio-economic disparities, highlighting the complex interplay between political decisions and their impact on employment dynamics.