Campaigns Roundup - 13 September

Parliament is back in full swing, with Sir Keir Starmer shaking up the Ministerial ranks of the Labour Party to showcase Labour's readiness for life in Downing Street. Elsewhere across the REC, the campaigns team have been busy focusing on Party conferences later this month and in October, and we have some important updates for you, including the Home Office's latest response on the Shortage Occupation List (SOL) and our Equality Diversity & Inclusion Summit.  

Labour's Reshuffle 

In a final push to the General Election, all eyes were on Sir Keir Starmer, who has reshuffled his Shadow Cabinet, alongside appointing former head of the Civil Service, Sue Gray as his Chief of Staff to ensure a smooth transition for Labour once they are in office, should they win the General Election.  

The key political changes of relevance to the REC was the promotion of Labour Deputy Prime Minister Angela Rayner to Shadow Secretary of State for Levelling Up, Housing and Communities (DLUHC), Liz Kendall as the Shadow Secretary of State for Work and Pensions (DWP), Darren Jones as Shadow Chief Secretary to the Treasury (HMT), and Seema Malhotra as Shadow Minister for Skills (DfE). The REC has written to all four MPs, congratulating them on their new appointments and offering to collaborate on their areas of focus on behalf of the recruitment industry. You can access each letter by clicking on the hyperlinks in this paragraph over the relevant Minister.  

Shortage Occupation List (SOL)  

On the 31st August, the Migration Advisory Committee (MAC) organised a meeting with industry and trade bodies to discuss the recent Shortage Occupation List (SOL) consultation. Whilst they were unable to comment on the specifics, the MAC have said that they will be publishing their full report on 3rd October, breaking down which occupations they recommend adding onto the Shortage Occupation List (SOL), and which occupations haven't been successful and why. The REC will be monitoring this process closely, and we will be keeping members fully informed.  

Education Sector Meeting 

Join us for the final Education Sector Group meeting of the year. With a packed agenda including the latest legal and campaigns updates from the REC, including a focus on rolled-up holiday pay and the REC Education Audit. We will also be joined by REC CEO Neil Carberry for an update of the REC’s wider business and a Q&A on the state of the trade. The agenda will also feature the latest on the effective use of AI and Technology in recruitment, with useful information on the benefits and risks of these. Sign up to attend here. 

REC Equality Diversity and Inclusion Summit 

Later this year the REC will be hosting our first ever in-person Equality, Diversity and Inclusion (EDI) Summit. This will be a unique opportunity to hear from industry leaders and business representatives about how to embrace and use EDI in the UK labour market. This event will also feature a keynote speaker and plenty of networking time for you to exchange thoughts, ideas and aspirations with fellow EDI enthusiasts and leaders in the field. You can reserve your place at this exclusive event here.  

Centre for Data, Ethics and Innovation (CDEI) AI Case Studies Request 

In an effort to support the government's planned AI laws, the CDEI is committed to fostering fairness in the application of artificial intelligence. To reap the benefits of AI as its use in hiring increases, the technology's fairness must be codified. The CDEI is investigating ways to gauge how fair AI systems are as well as tools for reducing bias. They are keen to hear from you, if you can offer any information on how your company has employed AI in its employment processes, to help shape AI legislation. Please provide examples of where your business has reduced bias when using AI systems in hiring. Click here to submit your case studies. 

Media Corner 

The REC’s expertise on the labour market was in demand this month as the ONS published its monthly labour market statistics which showed wage growth catching up with rising prices for the first time in nearly two years. REC Chief Executive Neil Carberry was on BBC News explaining that pay rising to meet falling inflation is a function of firms giving higher pay awards to staff in the spring, ongoing staff shortages in some sectors such as hospitality and logistics, and a big rise in the minimum wage. Our Deputy Chief Executive Kate Shoesmith told Bloomberg that there has been a softening of the labour market in recent months, but we are comparing against the record highs of 2022 across most of the UK economy. 

Research Corner

The REC’s latest Report on Jobs signalled a solid increase in demand for healthcare staff, both on a permanent and a temporary basis midway through the third quarter of the year. However, in August overall permanent billings decreased, which is expected at this time of year due to holidays. Temp billings also declined for the first time in three years. Our data shows pay pressures remain sharp for permanent workers and temp wages also increased across all four English regions and in Scotland, with London seeing by far the steepest rate of pay inflation. This is partly because of a shortage of labour with specific skills. Demand for both permanent and temporary staff increased during August, but temp staff demand expanded at a solid pace. Moreover, labour supply also increased during August for permanent and temp staff. 

In addition, if you have missed it, a reminder that our annual “Recruitment Industry Status Report” is currently collecting responses to produce our most popular piece of research. Please complete the survey as it helps REC members with benchmarking, client meetings and business planning, whilst also providing insight into the recruitment industry as a whole. Also, look out for our upcoming JobsOutlook which will be published on 27th Sept.