REC urges new Prime Minister to set businesses free to drive the growth the country needs

The Recruitment and Employment Confederation (REC) has called on the new Prime Minister to enable businesses to drive the economic recovery he wants. Redesigning planned employment reforms, supply-side reform of the economy and reducing the tax and regulatory burden on employing people will be vital to achieving this.

While temporary billings are growing at their fastest rate in three years, according to the latest REC/KPMG Report on Jobs, permanent hiring has yet to recover, having remained below growth levels for 45 consecutive months. The contrasting picture suggests businesses are cautiously increasing workforce flexibility but remain reluctant to make longer-term hiring commitments.

The REC is asking for a reset on reforms such as guaranteed hours that risk overburdening employers with bureaucracy, and could be particularly damaging for the temporary labour market which is currently outperforming permanent employment.

Neil Carberry, REC Chief Executive, said:  

“Andy Burnham comes to office with the good wishes of the business community. His commitment to being pro-business is welcome – but now firms across the country need to see action. Over the past few years, businesses have seen a swathe of well-intentioned policies raise costs and dampen hiring, contributing to the rising cost of living people face.

“It’s time to back business. That means inserting pragmatism into the unworkable elements of the government’s employment law changes, reducing the tax wedge on hiring people, and re-invigorating the industrial strategy with the kind of skills, planning and infrastructure reforms that will get private capital working.

“Government cannot solve all the problems we face, but it can create an environment that enables the private sector to play a much bigger role as part of the solution. That’s the chance businesses want to see from this new Prime Minister.”

Notes to editors

Report on Jobs: Sharper rise in temp billings in June, whilst permanent placements decline only slightly, July 2026.