Cut National Insurance rates to kickstart employment, says REC CEO

The government should cut National Insurance rates to reduce the cost of hiring as one measure to kickstart employment, the CEO of the REC has said.

Addressing the continued decrease of jobs nationally, the Recruitment & Employment Confederation’s Neil Carberry was speaking as the numbers of temporary workers available for work rose in July at the fastest rate in 20 years of data collection. At the same time, a rise in numbers of permanent workers available for work was the second-sharpest on record, according to the latest ‘Report on Jobs’ from the REC and KPMG.

Key findings in the report:

  • The downturn in recruitment activity eased considerably during the period
  • Redundancies contributed to the near-record numbers of candidate availability
  • Starting pay is on a continued fall
  • Regionally, temporary worker billings dropped “markedly” in the South of England and London, with mild increases reported in the Midlands and the North of England.
  • The public sector recorded steeper falls in permanent and temporary vacancies than in the private sector.

“There are far fewer vacancies in the market than before March, and more people looking for jobs,” Carberry said. “Recruiters will be key to helping people build confidence and find work – but the government needs to kickstart hiring. Reducing employers’ National Insurance rates would cut the cost of hiring, and a good Brexit trade deal will also support stronger business confidence and investment.”

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