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REC calls on the new PM to maintain labour market flexibility and tackle the skills crisis.

Gordon Brown began life as Prime Minister by declaring he would run “a new Government with new priorities”.

Helen Reynolds, Acting Chief Executive Officer of the REC, comments on what new priorities will help preserve the vital role of recruitment agencies in the labour market.

“The first priority I would give the Prime Minister is not to change his approach to flexible labour markets. The recruitment industry plays an essential role in getting 1.2 million people into temporary jobs every week, along with 100,000s of permanent placements. Our contribution has led to the economic success he often speaks about in relation to his ten years as Chancellor. We call on Gordon Brown as the new Prime Minister to maintain job flexibility.”

“In relation to new priorities, the first I would give the Chancellor would be skills. Our members experience candidate shortages on a daily basis, from engineers to social care workers. The new Government needs a new strategy to ensure that the children of today become the skilled workers businesses need tomorrow.

“Skills shortages will not be resolved in the short term and so it is therefore vital that the new points-based system for immigration, due to come into force next year, meets the needs of employers.

“A further clear priority of the previous Government was to get one million people off benefits and into work, which is likely to be taken forward by the new Prime Minister. This target is ambitious, but if it is combined with the skills strategy it could start to deliver the right candidates to recruitment agencies.

“The REC and the recruitment industry have an active role to play in this agenda. Recruitment agencies are ideal intermediaries for identifying skills gaps and getting people into work. REC will continue to work with the Government to ensure that the role of the recruitment industry is optimised.”

Commentary on the new Cabinet is below:

Chancellor of the Exchequer, Alistair Darling
Alistair Darling maintained the strong position of the recruitment industry as Secretary of State for Trade and Industry. Notably deciding that the balance of rights for temporary workers was correct and focusing the DTI on enforcement of existing rights. His support of flexible labour markets should be extended in the Treasury, along with financial support for the much needed skills agenda.

Secretary of State for Business, Enterprise and Regulatory Reform, John Hutton
REC welcomes the fact that an enhanced department for business remains at the heart of Government and that the old DTI was not been split up, as was rumoured. REC already has strong links with John Hutton through our work on diversity and with Jobcentre Plus and will build on these in the coming months.

Secretary of State for Work and Pensions, Peter Hain
REC has built a strong relationship with Jobcentre Plus in the past few years. We will be looking to take this forward under Peter Hain’s leadership. Other key areas will be the reform of Welfare to Work services, where the private sector could play a much wider role, and the new personal accounts for pensions and how this will be applied to the temporary workforce.

Secretary of State for Health, Alan Johnston
Alan Johnston has a good understanding of the recruitment industry from his time leading the DTI. REC hopes that we will be able to build on this knowledge to improve the relationship between the Department of Health