Industrial Strategy a chance to give business the shot of confidence needed - REC

Responding to the launch of the Industrial Strategy, the Recruitment and Employment Confederation (REC) Chief Executive Neil Carberry said:

“Firms need stable foundations from the state to deliver business investment and productivity growth. That’s what will increase prosperity and tackle the shortfall in the public finances. This Industrial Strategy is an important chance to finally make progress on this over the long term, forming a new partnership between business and government.  The test now is whether the strategy can be delivered, not just by the Department for Business, but at the core of all government policy.

“The inclusion of Professional and Business Services, including recruitment and talent firms, in a government industrial policy for the first time is hugely welcome. The sector is a UK domestic and exporting powerhouse, but one which needs to adapt to the challenge of both new technology and rising competition. Recruitment and staffing alone is worth £44bn per annum to our economy – and like other sectors, is included because it helps drive the whole economy. From infrastructure to food on the shelves, talent firms help every sector thrive. The REC’s role on the Sector Council is one we will use to make sure this plan – which the Council has worked hard on – is transformational.

“Like any strategy, today’s documents involve choices. A look at today’s announcements suggests workforce issues still need more attention, especially after skills were not at the heart of the recent Spending Review. Yet taking on workforce questions is how we tackle the systemic problems of lagging productivity, lack of skills provision and low confidence. If we address workforce needs, we can unlock £39bn every year of growth by giving companies access to the people and skills they need to build and grow. We will be pressing government to go further on this in both the Industrial Strategy and the Growth Plan.”

Notes to editors                      

1.     In REC’s Overcoming Shortages report, it shows exactly how much damage could be done if we do not step up. With a 10% surge in demand for staff across the economy, and the labour market restricted by shortages, we could see a 1.2% fall in expected GDP and productivity by 2027 – costing the economy anywhere between £30 billion and £39 billion every year. This figure is just short of two whole Elizabeth Lines.

2.     The Professional & Business Services Council acts as the main independent forum for the Professional & Business Services (PBS) sector and the UK government and to promote the long-term success of the sector in the UK and globally and accordingly, continue to enhance the sector’s symbiotic relationship and contribution to the UK economy. Neil Carberry is one of the members of the PBSC and its Steering Committee, representing UK recruitment and talent firms.

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