Boosting labour market and skills will be vote winners, say industry leaders

Calls to improve employment market conditions and build workforce skills in the UK are key themes from organisations involved in the recruitment and staffing industries following Prime Minister Rishi Sunak’s announcement yesterday [22 May 2024] that a General Election will be held on 4 July.

Recruitment & Employment Confederation CEO 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 £39bn every year – the equivalent of two whole Elizabeth Lines – if we do get it wrong.”

At the Association of Professional Staffing Companies (APSCo), global public policy director Tania Bowers added: “If any party wants to win the votes from the staffing sector, they will need a clear plan to boost the professional labour market. That must include caveats to build domestic talent, improve access to highly skilled international workers and support the flexible segments of the workforce through fair and appropriate legislation.”

Bowers reiterated APSCo’s recently launched manifesto which calls for, among other points, creating the right workforce regulatory environment through regulatory reforms which protect individual workers, drive economic growth and maximise productivity. This includes excluding highly paid contractors from the Agency Worker Regulations 2010 and reviews of Off Payroll IR35 and the employment status of the professional self-employed. Other points include harnessing technology for the skills revolution and supporting workforce skills growth, training and talent development.

At the Freelancer and Contractor Services Association (FCSA), CEO Chris Bryce said the organisation continues its campaign “for the introduction of regulation of the payment intermediary market and will continue to work with government and officials to ensure that any proposed regulatory environment works for every party involved in the supply chain and protects workers from rogue companies and unlawful schemes”. 

Bryce went on to say: “Whilst it’s clear that the prime minister has called the election earlier than many had thought, FCSA is ready to respond. We’ve been speaking to policy makers from all the main partiers and will continue to engage with them. It’s important that politicians understand the value of this complex but well-functioning market, and we’ll be working hard to ensure they do. We hope by doing so we can help the future government avoid poor legislative drafting which brings uncertainty like the off-payroll working rules or is outright misguided and damaging to the industry and workers alike.”

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