REC comments on announcement of General Election

Responding to the announcement of a General Election, REC Chief Executive Neil Carberry said: 

“Economic growth and competitiveness need to be at the heart of this election campaign. A vibrant economy is the only way to higher wages, better public services, and lower taxes. We have highlighted paths to all of that in our manifesto document by using the insights of recruiters who have a front-line view to how we get there.

“Any plan for competitiveness is fundamentally about the talent and application of our British workforce. In the next few weeks, politicians must show that they really get today’s labour market. From helping people build skills to investment in transport and childcare, there is a lot to do. But it starts with understanding that workers and businesses need a more flexible approach than in the past, and that our regulation, skills and tax systems need to keep up.

“The UK has a tight labour supply – we need to make the most of it. The cost to the UK economy in lost wages and profits could be up to £39 billion every year – the equivalent of two whole Elizabeth Lines – if we do get it wrong. “

Ends

Notes to editors:

REC’s Dynamic labour markets for growth published recently, sets out four key themes, supplemented by focused recommendations that, if taken, would underpin economic success:

Understanding today’s people and labour market challenges
This includes working with businesses and employee representative bodies to develop a Workforce Plan for the UK, conduct a Workplace Employment Relations Study (WERS) and acknowledge that diverse ways of working support the economic and social development of the UK.

Supporting our labour market transition by preparing for the future
This calls on the next government to support our local jobs market, introducing an immigration policy that supports a labour market in transition, embed Net Zero and tech change into education and establishing the UK as a world leader in the safe and ethical use of AI.

Boosting workforce productivity and driving down inactivity
Within the first 100 days of government, reform the Apprenticeship Levy, expand the eligibility for 30-hours childcare entitlement to parents or carers in training or education, fund improved local rail and bus links and consult on and publish plans to increase the childcare workforce.

Regulating for a sustainable and dynamic labour market
This suggests introducing regulation for the whole labour supply chain, introduce a properly resourced Single Enforcement Body (SEB), overhaul the off payroll working rules (IR35) and a broad review and revise employment laws to reflect the increasingly flexible way that people work.

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The REC is the voice of the recruitment industry, speaking up for great recruiters. We drive standards and empower recruitment businesses to build better futures for great candidates and themselves. We are champions of an industry which is fundamental to the strength of the UK economy.

Find out more about the Recruitment & Employment Confederation at www.rec.uk.com