Labour Market and Inflationary Trade-offs: Assessing the Macroeconomic
Implications of Labour’s 2024 Victory in the UK after One and a Half
Decades of Conservative Dominance

Aadit Tuli

doi:10.46609/IJSSER.2025.v10i11.029

Title: Labour Market and Inflationary Trade-offs: Assessing the Macroeconomic Implications of Labour’s 2024 Victory in the UK after One and a Half Decades of Conservative Dominance
Authors: Aadit Tuli
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 10 Issue: 11 Publication Date: November 2025 DOI: 10.46609/IJSSER.2025.v10i11.029
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Aadit Tuli The Shri Ram School, Moulsari
MLA 8 Tuli, Aadit. "Labour Market and Inflationary Trade-offs: Assessing the Macroeconomic Implications of Labour’s 2024 Victory in the UK after One and a Half Decades of Conservative Dominance." Int. j. of Social Science and Economic Research, vol. 10, no. 11, Nov. 2025, pp. 6086-6109, doi.org/10.46609/IJSSER.2025.v10i11.029. Accessed Nov. 2025. APA 6 Tuli, A. (2025, November). Labour Market and Inflationary Trade-offs: Assessing the Macroeconomic Implications of Labour’s 2024 Victory in the UK after One and a Half Decades of Conservative Dominance. Int. j. of Social Science and Economic Research, 10(11), 6086-6109. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i11.029 Chicago Tuli, Aadit. "Labour Market and Inflationary Trade-offs: Assessing the Macroeconomic Implications of Labour’s 2024 Victory in the UK after One and a Half Decades of Conservative Dominance." Int. j. of Social Science and Economic Research 10, no. 11 (November 2025), 6086-6109. Accessed November, 2025. https://doi.org/10.46609/IJSSER.2025.v10i11.029.
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ABSTRACT: The Labour Party’s win in the 2024 UK election is one of the noteworthy political changes in the UK’s economy and political scenario after almost 15 years of dominance of conservative leadership. This paper will extensively explore the economic scenario of the UK in the late 1970s when Thatcher took charge of the UK and the significant changes made by Thatcher in the UK economy. This research paper will thoroughly look at the various economic impacts of this political change and focus on job market trends and the trade-offs related to inflation. It will focus on how Labour’s policy agenda—focused on wage growth, public investment, green infrastructure, and workers’ rights—might affect employment, productivity, and price stability in the medium term. This research will look at Keynesian and supply-side ideas to see if Labour’s approach (in contrast to Thatcher approach) to increasing spending can boost overall demand without causing long-term inflation. This paper will look at how changes in the labor laws, such as changes in minimum wages and stronger unions by Labour party might influence the macroeconomic objectives of the government, such as unemployment and inflation as explained through Phillips’s curve. This paper will look at the Labour party’s approach towards real wage recovery but its success will rely on managing supply constraints and keeping investor confidence high. The core objective of this research is to analyze how Thatcher dealt with the economic situation in the late 1970s and made major economic policy changes and now, after 15 years, when Labour is in the majority and the global economic and political scenario is changing, how this big political shift in the UK could change the balance of growth, jobs, and price stability in an economy.

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