The depth and extent of the global financial crisis suggest the economic system is likely to undergo some major changes. This paper looks at one aspect of how 'tomorrow's capitalism' could differ from the neo-liberal model of the past: the balance of the United Kingdom's economy. In particular, it focuses on employment and asks how government can support the transition to a stronger and more balanced labour force.

While the immediate fiscal and monetary measures introduced by the Government and Bank of England to combat the recession are important, our focus is on longer term patterns of growth and government action.