Campaigns Roundup - 20 March 2024

Despite the rumours of a May general election being thrown out by the Prime Minister, Parliament is quickly shifting into general election mode. Here at the REC, the campaigns team are trying to plug into as many relevant government conversations as possible to make sure that, no matter the outcome of the election, the recruitment industry - and our member's views are at the forefront of any new government's mind. We  have updates on apprenticeships and our latest discussions on immigration. There's also a health and social care sector meeting to look forward to, and our latest media and research highlights.  

Apprenticeships policies update 

Over the weekend there had been rumours of an apprenticeship policy blitz pending from the government, as Rishi Sunak looked to boost SME businesses. Cue a BusinessConnect event, where a flurry of apprenticeships policies were announced in conjunction with the Departments for Education (DfE), Business and Trade (DBT) and Science, Innovation and Technology (DSIT). Many of these policies were aimed at making apprenticeships more accessible for SMEs. High-profile announcements included a £60 million boost to cover apprenticeships for anyone from 16-21 years old, creating an extra 20,000 apprenticeship places, and doubling the amount of Levy contributions large businesses can transfer over (from 25% to 50%).  

Whilst the REC welcomes investment in the apprenticeship system and sees this as crucial to tackling labour shortages, this week's announcement didn't address the elephant in the room: the need for reform to the rigid Apprenticeship Levy system and the fact that recruitment businesses cannot capitalise on their investments in the Levy. The REC will continue to lobby the government on this issue. You can also read our Deputy CEO, Kate Shoesmith's media response by clicking here.  

Immigration update 

Aware of how fast the Home Office are pushing through the changes announced in their 5-point immigration plan, the team met with civil servants working in the Treasury’s (HMT) migration unit to discuss the economic implications of the reforms as highlighted by REC members. Alongside this, we have also met with the Department for Business and Trade (DBT), who are doing a sectoral analysis of the legal migration announcements. If you would like to feed in, or have any questions, please email Usman.Ali@rec.uk.com. 

Health & Social care sector meeting 

Join us next week on 28 March for the latest Health & Social care sector meeting. With the latest legal and campaigns updates for the sector in addition to guest speakers from the Royal College of Nursing to discuss the relationship between agencies and their members. We'll also be joined by modern slavery charity, Unseen, who will be speaking about the risks of modern slavery in the care sector. This meeting will also have time for networking - an ideal opportunity to discuss the latest developments with peers from the sector. You can sign up to attend here.  

Research Corner 

In the last couple of weeks, the research team has released two of its monthly publications. The latest Report on Jobs revealed that the number of people placed into permanent jobs across the UK continued to decline  midway through the first quarter of 2024, as uncertainty over the economic outlook led employers to often delay or freeze hiring decisions. Meanwhile, our Labour Market Tracker found that in February 2024 there were 1.8m active postings, suggesting a “soft landing” likely for the labour market since 2023.    

Media Corner  

REC spokespeople were front and centre in the media this month, providing expert views on the labour market, and leading the public debate on the economy. This included appearances on the UK’s three flagship business shows on the same day: BBC Radio 4 Today; BBC Five Live Wake Up to Money; and Sky News’ Ian King Live - an exhausting but rewarding schedule for anyone to tackle. On all these shows, our main message has been that the Bank of England beginning to cut the base rate would deliver a shot of confidence to businesses and support a likely bounce back in growth this summer. 

And if you missed the 2024 Recruitment Expo this week, here is a write-up of REC Chief Executive Neil Carberry’s speech by Recruiter magazine: REC’S CARBERRY: recruitment is a partnership, not a transaction.