workers with different skills has outweighed the supply of said workers causing disparity in the highest of earners to the lowest earners whilst increasing their bargaining power also.

Labour market deregulation is implemented to attain economies of scale, that is increase productivity whilst reducing average unit labour cost. In turn they increase the efficiency of the firms and they are able to expand and allocate resources more efficiently specifically important if they are multinational. By lowering wages and increasing insecurity removing legislation, there is a clear lower labour cost which can result in substitution of labour for capital, dropping capital intensity which harms labour productivity growth but enhances capital growth. Labour market deregulation reforms was implemented in Europe as part of a strategy that would close the gap between U.S. in terms of Foreign Direct Investment implemented abroad, what we can note is that over a steady period of time we have seen a massive improvement of European Union relative to the US. According to OECD (2019), in 2017, US GDP per capita and productivity levels are at $17,348,625.8 compared to EU’s at $18,568,705.8, within the EU following the US model of mainly deregulated markets has seen a substantial change over the years in the GDP.

Overall, considering the basis of the examination of research, it can be argued that the deregulation of the labour market resulted in improved productivity and performance citing examples in the EU. We must note that the deregulation of labour markets involved the removing of institutions and minimal internal and external intervention. Over a sustained period of time, economies of scale has allowed firms to become more efficient in terms of allocating resources in segments of the firm that need it but even more so which defines labour market deregulation, the ability for firms to align themselves according to the elasticity of demand of the market to streamline which has improved organisations overall productivity and performance.