Background: The labour market for classroom teachers in England is a mixture of free-market capitalism and state workforce planning, interlaced with ideological and political interventions such as the introduction of new routes into teaching and the capping of class size. Purpose: The article examines the relationship between the teacher labour market and the economy in order to predict how it will be affected by government's attempt to manage the current economic crisis. Sources of evidence: In doing this, it draws upon a data set which tracks teacher supply and demand in England over the last 20 years. Main argument: The lack of articulation between workforce planning and the free market in teacher labour is traced across the two economic cycles from the upswing of the late 1980s through the recession of the early 1990s and the recovery of the late 1990s through the so-called "goldilocks" period up to 2008 when the recession, generated by the banking crisis, engulfed the western world. The variations in the market are analysed along with factors impacting on the fluctuations of the teacher labour market. Conclusions: The article concludes that there has been a lack of articulation between workforce planning and the free market in teacher labour, often exacerbated by the unintended consequences of political decisions. It predicts how this will impact on the workforce as government strategies attempt to reduce the financial deficit and encourage the private sector to stimulate the economy. (Contains 1 figure and 5 tables.)