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Gordon's Speech: his view of the future of recruitment industry and the UK labour market

This week’s speech by Gordon Brown included a number of initial references to future Government policy that are of direct relevance to the recruitment industry and the UK labour market.

As Gordon Brown’s new Cabinet is announced and new policy directions begin to emerge, the REC External Relations team will be monitoring specific implications for different sectors within REC membership. In the meantime, some of the generic issues touched on in Gordon Brown’s speech included:

• A stable economy founded on dynamic, flexible markets and open competition;
• Protection for vulnerable workers (particularly with regards to ensuring that National Minimum Wage requirements are not breached);
• Enhanced opportunities in new markets for UK businesses;
  New measures to balance between work and family life;
• Better education - in particular through enhancing links between schools, business, universities and the voluntary sector;
• Eradicating child poverty;
• Addressing prejudice and discrimination;
• Making the NHS an immediate priority.

The speech also confirmed that responsibility for international trade issues would move from the DTI to the Department of International Development and we will be monitoring any further changes to the role and remit of the DTI.

With regards to the NHS, it is interesting to note the commitment to “do better at ensuring access for patients at the hours that suit them and at providing the wider range of services now needed by our growing elderly population”. The availability of highly-skilled and highly flexible agency workers can play a key role in delivering this commitment. Agency work must be seen as part of the solution rather that part of the problem when discussing the resourcing implications of an increasingly flexible service provision within the NHS. A specific note on this has been circulated to all members of the medical and nursing & social care sector groups.

In terms of some of the other main policy issues, the REC supports the focus on education which is essential in order to address ongoing skills shortages in many sectors. It is time for the Government to deliver on the skills agenda which recent reports have highlighted as one of the main threats to the continued growth of the UK recruitment industry.

The ongoing focus on eradicating child poverty links into the debate on getting more people off benefits and into work. This is an opportunity for highlighting the role of our industry in helping people gain access to and progress with the labour market.

One other interesting announcement was that the Labour Party’s National Executive will now consult with members on policy forums in every constituency, leading to a stronger National Policy Forum. The REC’s lobbying activities will reflect this evolution – in particular by continuing to draw upon the input of REC Regional Directors and Sector Chairs to take forward our lobbying messages on a regional level as well as at a sectoral level.

Gordon Brown’s Cabinet will be announced probably on Thursday. We will be contacting the new Secretaries of State and Ministers following the announcement in order to highlight the views of REC members on a range of employment and labour market issues and to underline the ongoing contribution of the recruitment industry in all the key sectors represented by REC sector groups.

We will make sure that you are kept up-to-date with all developments and an overview of the new Cabinet will be circulated once the announcement has been made.

A full copy of the speech can be accessed at the following link: http://www.labour.org.uk/gordon_brown__leader_of_the_labour_party