The Netherlands and the United Kingdom have experienced a major decline in
unemployment rates since the early 1980s. Over the same period, there was a
lso a strong decline in non-employment rates. Since in most other countries
of the European Union such declines did not occur there is something of an
unemployment miracle in both countries. Combinations of supply-oriented po
licies causing a significant reduction of equilibrium unemployment rates in
both countries are responsible for this.