Latest news from policy and research

Schools out for Parliament

Parliament may be in recess, but things have not slowed down on the REC campaign trail. The policy and campaign team has continued to be out and about “virtually” on behalf of the industry over the last fortnight. Our priorities this week have included, participation in the Home Office Employers Committee to discuss Right to work (RTW) and immigration, and submitting evidence to the BEIS Select Committee on the impact of Coronavirus on the economy and a BEIS consultation on Trade post-Brexit.  

Things have been particularly busy in the healthcare sector. The REC have submitted a Freedom of Information request to NHS Improvement as specialist healthcare recruiters report spiralling hospital staffing bank rates. Despite repeated claims from Government that staffing banks always offer value for money, the REC says banks are not inherently better than well-managed agency provision for the NHS.  

This follows on the back of an article in Health Service Journal, where Chief Executive of the REC Neil Carberry, has outlined how Covid-19 has proven the unique value that healthcare recruiters and agency staff bring. 

Guidance for trusts on the use of agencies during Covid-19 has been updated. PPN 02/20 is clear that payments should not be made to suppliers where there is no contractual volume commitment to supply; only workers on live assignments qualify for payment. Further details can be found on our Covid-19 hub. 

Call for evidence: HMRC to tackle tax avoidance 

HMRC are currently consulting on measures to tackle disguised remuneration tax avoidance. The consultation seeks to understand what the drivers of disguised remuneration tax avoidance are; whether there are any variations of disguised remuneration schemes not currently covered in legislation; and where the government can take further action to tackle disguised remuneration tax avoidance beyond its planned approach. The REC will be feeding into the consultation and calling for greater regulation of the umbrella company industry. As always we welcome view and evidence from members. If you would like to hear about this consultation and how you can shape the REC’s submission please contact Stakeholder Engagement Manager Ornella Nsio  

Research Corner

As the economy begins to open after months of lockdown there are signs that the downturn in recruitment activity is easing up. The latest figures from Report on Jobs, has revealed: 

• Notably softer falls in both permanent placements and temp billings 
• Redundancies led to near-record rise in candidates supply... 
• ... resulting in further downward pressure on starting pay. 

Meanwhile the latest figures from the ONS have unearthed huge changes within the UK labour market, with multiple records being broken. The unemployment rate remained near all-time lows in June, confounding expectations for a rise in unemployment later on in the year once COVID19 threat has settled. Amongst the changes, the labour market also experienced: 

• A decline in the number of hours worked and the number of people self-employed 
• A rise in the number of people in full-time employment  
• A rise in job vacancies since the peak of the pandemic in April  

Commenting on the figures released, Chief Executive Neil Carberry said: 

There are signs of a modest recovery in the rising number of job vacancies. Our Jobs Recovery Tracker shows that in mid-July there were over one million active job postings – a number that has been rising steadily. The challenge now is to help firms keep staff and to boost hiring. More needs to be done to support the newly unemployed, including support from professional recruiters through the Government’s proposed private sector advice scheme, and access to training. Government must now act with urgency to ensure these schemes are up and running through the autumn.  

For more analysis on the jobs market, including regional jobs data, look out for the REC Jobs Recovery Tracker which will be published today.  

Blue Collar sector webinar

Join us for our next Blue Collar sector webinar on the 15^th September, aimed at supporting recruitment professionals working in the Construction, Industrial, Drivers, Hospitality, and Sales & Retail sectors. This webinar will give members the opportunity to hear from experts on what the current opportunities and risks are in the sector.