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This report challenges the common belief that low levels of employment regulation and weak trade unions account for the UK's low unemployment. It also questions the assumption that emulating the US is essential in order to reduce the high levels of unemployment in some European countries. The author suggests that several European countries, for example Denmark, Sweden, Austria and the Netherlands, demonstrate comparable or higher levels of 'labour market dynamism' to the UK while at the same time, ensuring higher levels of 'workplace justice'. These countries prove that the combination of moderately tight labour laws, strong trade unions and collective bargaining, and relatively generous levels of unemployment benefits (combined with tight conditions, job search obligations and active labour market programmes), is compatible with strong employment performance.