e period between the late 1970’s to the conclusion of Margaret Thatcher’s premiership saw a transition towards deregulated labour markets across the EU, prompting improving in productivity and performance. These were seen in key factors which affected the following, employment, income and productivity. It is important to note that labour market deregulation is an internal and external process in the sense that it requires an internal SWOT analysis of the firm looking at various compliance functions available and equipping staff promptly as well as an external analysis to ascertain the market standard. Regarding employment, labour market deregulation is concerned with the amount of time one is in unemployment, for example, cyclical unemployment (which follows the cycle of the economy) the amount of time unemployed may significantly increase in the case of a financial crash for investment bankers, a mis-match of skills. Labour market deregulation seeks to minimise the bargaining power of institutions that perpetuate regulation in order to improve productivity and performance.

With regards to employment, regulations enable a scenario where deregulated labour markets cannot minimise unemployment, despite this, minimum wage marginalise workers not at their productive potential. Legislation protecting employees in the case of redundancies as seen above can discourage employers from hiring as the overall cost associated outweighs the benefit of hiring prospective talent. Considering this all, trade unions through the use of collective bargaining have placed the bargaining power with employees which has created income disparity and lower productivity as employees will be seen to feel as if they are not regarded highly within their specific organisations.
With regards to income, labour market regulation increases income disparity in that there is the presence of strong labour unions for example mining, high statutory minimum wages and laws to protect their employees. Labour market regulation favours the wider workforces as their concerns about unjust income is taken into account, pushing for more of an income disparity in general. As a result, higher earns increase in wages under