Active labour, liberty and democracy

The labour market policies pursued by the New Labour government in the UK appear to fit well with the categories of concern identified in the European Commission’s Communication “Employment and Social Policy” (2001). Despite this apparent good fit, the concrete policies pursued by New Labour have been widely condemned by critics within the UK and elsewhere in the EU. This essay examines the validity of the main criticisms raised against New Labour’s approach to labour activation, and argues that they are largely misguided. The key thesis is that critics tend to adopt the wrong yardstick when assessing New Labour and its social policy. Rather than comparing New Labour with the 1945 social-democratic welfare state, the proper point of comparison should be with Thatcherism. By this measure, New Labour’s efforts-whilst still lacking in certain regards- represent a valuable improvement. Indeed, it is argued, they involve a return to probably the most important element of 1945 social-democratic principles: the notion of the state as an enabling force