Two institutions have retarded UK productivity growth in the post-war period: industrial relations and education. The failings of
both were largely addressed in the 1980s. The productivity improvement of the 1980s was genuine and was largely due to the
reduction in union power brought about by the trade union legislation of the 1980s. The 1980s and 1990s have also seen large falls
in the proportion of the labour force which is unqualified and rises in enrolment rates in further and higher education, changes
which tend to increase long-run growth. But two factors have obscured the extent o f the improvement. First, the whole climate for
economic growth is less favourable than it was in the so-called Golden Age prior to the first oil shock in 1973. Second, UK
macroeconomic policy compares poorly with other OECD countries: booms have been shorter and recessions longer, so that
microeconomic success has been masked by macroeconomic failure.
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