The UK's Labour government, led by Keir Starmer, has implemented policies mirroring France's approach, significantly raising labor costs through higher minimum wages and payroll taxes. £35 billion in payroll taxes since 2024 has made employment more expensive, while the national living wage rose 11% and the youth wage by 26.2%. Unemployment has risen to 5.2%, up from 4.3% under Labour despite economic growth, reflecting a shift towards capital investment. 3.5% business investment growth in 2025 marks the fastest pace since 2022, and productivity, measured by output per worker, increased 2% last year. This transition, begun under Conservatives with the national living wage, is seen as an unintended consequence of rewarding low-paid work rather than a deliberate strategy.

Economists like Tom Pugh note Britain is becoming less like the US and more like France, which has 22% GDP investment and 7.5% unemployment, yielding 13% greater productivity. However, UK youth unemployment at 16.1% is a significant concern.