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Government and campaigns
From political changes, economic challenge, and new legislation to navigate - our Campaigns team has been busy ensuring the voice of our industry was heard throughout the year. From our Overcoming Shortages report to our Manifesto for Growth, our work on the repeal of Regulation 7 to our ongoing efforts on digital right to work, we've enjoyed some great successes this year. We've built relationships with industry colleagues, new ministers, and MPs to really raise the profile of the work you do.
And our work doesn't stop there. In 2023, we'll be looking at green jobs and skills and demonstrating how REC members can help shape policy to ensure we've got the right people with the right skills for the net zero transition. We'll also be building on our work on Equality, Diversity and Inclusion (EDI), conducting and publishing the results of a survey around attitudes and approaches to EDI in our industry. Amongst other things, we’ll also be campaigning for clearer employment legislation, as well as on issues like workforce planning and procurement in the health sector.
More detail on what we've been up to in the last couple of weeks below.
On behalf of the REC Campaigns team, we want to wish you a very happy Christmas and a wonderful New Year!
The REC is aware of media and political focus on NHS staffing issues in recent weeks including agency costs. The REC has been clear that the UK needs a comprehensive, long-term workforce strategy as well as appropriate funding for workers’ pay, working conditions and training. There is also a fundamental issue with the NHS staffing frameworks that are unworkable for suppliers and don't provide value for taxpayer money. We urgently need to get workforce planning right in the NHS. And this starts with a better understanding of the vital role of agency staff and collaboration between the government and recruiters. Read our statement here.
Following last year's consultation to make flexible working the default, the government published its response last Monday and confirmed that amongst other changes, the right to request flexible working will become a day 1 right for employees. The REC has written a blog to explain why the government is doing this, what impact this might have for recruitment businesses. It sets out some areas where further clarification from BEIS is needed - something we're working with officials to get. Yesterday, we hosted a member webinar with one of the BEIS officials working on this piece of legislation to provide more information about the consultation findings, timescales for implementation, and how this could impact REC members. You can access the recording here.
Earlier this week, REC CEO Neil Carberry attended the Professional Business Services Council with new Industry Minister, Nusrat Ghani MP. Neil highlighted issues REC members are facing with the new digital right to work checking system and the Home Office's lack of engagement on this issue. He also talked about umbrella companies, some of whom are pressuring workers to use their services, putting compliant agencies at a competitive disadvantage. He raised the need for regulation and enhanced enforcement of umbrellas to tackle this.
Last week, the campaigns team was representing the REC at various stakeholder roundtables. The first was on the skills agenda and social mobility, hosted in parliament by the Association of Accounting Technicians (AAT). It was an opportunity to talk about findings from our Overcoming Shortages report and highlight the need for Apprenticeship Levy reform. Toby Perkins, Shadow Skills Minister was also in attendance and agreed with the need for reform, setting out Labour's position that a future Levy, known as a Growth and Skills Levy, should enable employers to spend 50% on apprenticeships and 50% on other, shorter courses to help upskill and reskill.
Our Deputy CEO, Kate Shoesmith discussed shortages with the new Work and Pensions Minister, Guy Opperman MP. This provided another opportunity to share our views on the Apprenticeship Levy and the reasons why people may become economically inactive, the role of work coaches and the success of the Restart scheme.
Last Wednesday, our Campaigns Manager, Sam was back in parliament for a breakfast roundtable on green skills. There was discussion around the definition of 'green' jobs and skills, improving careers advice and people's understanding of STEM. Currently, many problems are caused by the UK’s lack of lifelong learning and barriers including childcare costs, and accessibility. Adult education is essential to re-skill and tap into the current labour market, particularly at a time of shortages.
As part of the Autumn Statement, the government announced a new independent review into the oversight and governance of integrated care systems. Patricia Hewitt is delivering the review to reduce health disparities and improve health outcomes across the country. The REC has written to Patricia Hewitt introducing ourselves and the work of our members, urging her to consider workforce and procurement issues as part of the review. You can read the letter here.
The Home Office has reported an increase in the number fraudulent documents being used by overseas candidates. This includes both fully counterfeit documents as well as real documents that have been fraudulently edited to include false data. In addition to the Home Office’s standard guidance on how to check right to work, they have also recommended two online databases, PRADO and EdisonTD, which offer detailed descriptions on the appearance and security features of different overseas ID documents.
The REC’s Recruitment Industry Status Report 2021/22 revealed that the recruitment and staffing industry contributed £42.9 billion of direct Gross Value Added (GVA) to the UK economy in 2021. This marked a 21.7% increase on 2020 and a rise on pre-pandemic levels, showing the vital role the industry played in the UK’s economic recovery between January and December 2021.
The REC’s latest Report on Jobs found that permanent placements fell for the second successive month, albeit at a softer rate than that seen in October. Meanwhile, temp billings rose modestly after broadly stagnating in the previous month.
Next week, we’ll be publishing our latest JobsOutlook, keep an eye out for the latest insights into the jobs market.
The December Report on Jobs received widespread media coverage across national, trade and reginal publications with over 250 publications featuring the figures. The Independent, The Times, Daily Mail and City AM all featured Neil’s comments that outlined despite the economic uncertainty, there isn’t a major slowdown in hiring.
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