IoD press release Government action needed to revive flatlining labour market
Commenting on this morning’s release of ONS labour market data, Alex Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:
“Today’s data reflects a stagnant labour market, with job vacancies down by 6,000 in the latest quarter and the number of payrolled employees down 13,000 on the month.
“If the Government is to deliver on its promise of growth and prosperity in every postcode, it must take concrete steps to restore employer confidence and support job creation. This will require addressing the mounting costs and risks of employment that have resulted from the implementation of the Employment Rights Act, the hike in employer’s National Insurance contributions, and successive above-inflation increases to the minimum wage.
“The Government has an opportunity in its response to its consultation on reforms to zero-hours and similar contracts to protect the flexibility that both employers and many workers value. As a first step, it should:
- Set the low hours threshold at 8 hours.
- Set the reference period at 52 weeks.
- Establish that seven days’ notice of shifts and changes to shifts should be presumed reasonable.
- Set the short notice period at 1 day.
“Without action to tackle the cost of employment, there is little prospect of employers having the confidence to grow their headcount.”
