IoD press release Government must make employment reforms workable for employers to boost job creation
Responding to the latest ONS labour market data, Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:
“Today’s data reflects ongoing stagnation in employer demand for labour, with payrolled employees down by 11,000 on the month and vacancies down by 3.9% on the quarter. Whilst the unemployment rate has decreased on the quarter, this appears to be linked to increasing rates of economic inactivity, rather than job creation.
“A cocktail of increased employment costs and regulations, coming at a time of record low business confidence, has made hiring new staff a significantly less attractive proposition for employers.
“In its recent response to the consultation on the new right of trade unions to access workplaces, the Government missed an opportunity to demonstrate to employers that it’s taking a pragmatic approach to implementing the Employment Rights Act. With little to no evidence that employer concerns are being listened to in the development of secondary legislation, employer confidence in hiring continues to be undermined by the reforms.
“If the Government is serious about reversing the decline in job creation, it must change course and demonstrate a willingness to make its employment reforms workable by finding solutions via meaningful negotiations with employers.”
