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<p>A key purpose of the Hartz reforms was to increase flexibility in the German labour
market and reduce tax pressures on low-paid and temporary workers. It helped Germany
stop a long-term increase in unemployment.</p><p> </p><p>The UK unemployment rate
currently stands at 4.3%, a 42 year low. The UK ranks very well internationally on
labour market flexibility. It is a key strength of our economy and has played an important
role in achieving the near record employment levels that we currently enjoy.</p><p>
</p><p>We also exempt many low-paid jobs from income tax. This government has increased
the personal allowance, and as a result, 1.2m individuals will be taken out of income
tax altogether by 2018-19 compared to 2015-16.</p><p> </p><p>We are also introducing
Universal Credit, a long overdue and necessary reform. It responds dynamically to
changes in income and ensures that it always pays to work more.</p>
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