Burnham facing calls to cut employment red tape as job seekers grow for 41 months
The government is facing calls to strip red tape around employment after the pool of people looking for jobs in the UK grew for a 41st consecutive month. The number of people on the hunt for work has now grown for nearly three and a half years while the number of available jobs has declined [...]
The UK government is under increasing pressure to reduce employment red tape as the number of job seekers has grown for a record 41st month in a row. Recent data from KPMG and the Recruitment and Employment Confederation (REC) shows that while the unemployment rate stands at 4.9%, vacancies have been dwindling for 22 consecutive months.
This has led to a rise in temporary placements for the fourth month in a row, with businesses potentially needing to hire more people on short-term contracts. Maxine Bligh, REC’s chief membership and innovation officer, urged the government to "revive hiring plans" and emphasised the importance of easing employment-related costs and regulations.
Industry figures have put pressure on Andy Burnham, John Healey, and business secretary Jonathan Reynolds to improve the jobs market, particularly as the party prepares to set out its policy agenda. Burnham, who has made youth employment a priority, faces criticism for the impact of tax hikes on businesses and changes to employment law introduced by Sir Keir Starmer's government.
The KPMG report revealed that firms are raising starting salaries for new hires as an expedient measure to boost pay, with the biggest increases seen in London. A new set of procurement rules will also incentivise employers to pay more than the national minimum wage.
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