If either the Conservative Party or the Labour Party is elected
with a majority then the outlook for the jobs market will be
much better. (In my opinion this is a good case for the first
past the post system, but that’s beside the point). Having
a party that can act decisively reduces economic risk.
the parties have relatively similar policies when it comes to
the jobs market. Neither is proposing a massive hike in taxes,
as the Liberal Democrats are, which would harm the economy as
the highly skilled and the high net worth, which support and
create jobs leave the country or become tax exiles.
Party in the long term is likely to reduce the number of people
that work in the public sector. Therefore as a result if you
currently or looking to work in this sector, then your employment
prospects might be diminished. Nevertheless this is not entirely
a bad thing. If the reduction in public sector employment leads
to lower taxation then this should stimulate economic growth
as people have more money in their pockets to spend on other
sectors in the economy.
employment also acts as a barrier to private sector employment.
The public sector usurps markets and skilled employees from
the private sector, and as a result hinders the growth of this
sector. Without the hindrance of profit requirements and short-term
cash flow needs the public sector can continue to operate despite
its lower productivity compared to the private sector. Therefore,
a slowing of public sector employment growth should help the
private sector to flourish as it replaces the public sector.
This private sector employment is likely to be of higher productivity
with greater returns, which in turn will help to boost employment
in the wider economy.
of the election is not a done deal, but nor is the outcome for
the jobs market. There currently exists plenty of risk in the
economy and the uncertainty of an election in both the short
and the long-terms may act to unsettle to economy further. This
election is a purely political act, as in many ways is not in
the national interest, and could further weaken employment prospects.