PRB ñ Implications for employment and the UK Labour Market

The Recruitment & Employment Confederation (REC), the representative body for the UK recruitment industry, has sounded a note of caution regarding the employment and social inclusion measures announced in yesterdayís Pre-Budget Report and Comprehensive Spending Review.

One of the Governmentís key targets is to maximise employment opportunities for all ñ including specific target groups such as lone parents ñ in order to achieve an ambitious overall employment rate of 80 per cent.

Commenting on the measures for lone parents announced yesterday by Chancellor Alistair Darling, REC Director of External Relations Tom Hadley said: ìThere are a number of barriers to overcome in order to encourage more lone parents into work. The extension of the top-up may act as an incentive for some people but it has recently been shown that many lone parents do not want to go back to work.

ìWhat is needed is a more flexible approach to employment ñ in particular by providing viable options such as short-term assignments and temporary work placements which offer a key stepping stone into the labour marketî.

Temporary work is increasingly recognised as a viable and rewarding option for excluded or under-represented groups. In support of this, the REC is undertaking a joint research project with the Adecco Institute which will highlight the positive role that recruitment agencies can play in helping lone parents

Yesterdayís announcements also included a reiteration of the Governmentís overall commitment to a flexible and open labour market. This commitment is important within the context of possible new legislation from Brussels ñ such as the current draft of the EU Agency Workers Directive - that could have a negative impact on the UK labour market.
One major area of concern is the impact of local authority budget restrictions on the ability to attract and place workers in sectors such as social care. Members of the RECís Nursing & Social Care have already reported that cost-cutting exercises over the last year have had a substantial impact on the effective provision of social care services. There is a real fear that measures announced in the Comprehensive Spending Review could make this even more difficult.