Latest news from policy and research

Recruiters key players in Chancellor's job protection strategy

Chancellor Rishi Sunak has delivered his Summer Statement, outlining his plans for restarting the economy. This was a summer statement designed to protect, support and create jobs, recognising the role of the recruitment industry as a key player in the jobs recovery strategy.

After months of working closely with the Department for Work and Pensions and calling on the Chancellor to focus on jobs, he has done so, outlining his plans to increase employment support by using private sector recruiters. This quick round-up blog gives more. Our Policy and Campaigns Team are continuing to work hard with DWP on the details – get in touch at policy@rec.uk.com for more info.

New immigration rules a challenge

The Government has published details of the new points-based immigration system to be implemented on 1 January next year. With less than six months before the new immigration system comes into effect there are big questions to answer. With challenges from Covid-19 and the Brexit deal, can it be delivered effectively? Will the new system be flexible enough to meet future demand?

This is a huge shake up of the rules, and while the troubling economic situation means candidate availability is higher right now, there is no quick fix to the skills shortages affecting sectors like construction, IT, and health & social care. Getting immigration and skills policy right to address these needs is crucial for our economic recovery. We have called for an efficient and clear system from day one, including compliance measures that ensure those who play by the rules prosper.

Working for all members

• The REC is giving evidence this week to the Low Pay Commission (LPC) - the independent body that advises the Government on the minimum wage. We’ll be representing members’ interest on the affordability and effects of an increase in April 2021.
• We work closely with the Director of Labour Market Enforcement to ensure labour exploitation is rooted out and dealt with. The REC has long called for greater engagement between regulators and businesses, and greater funding to ensure that regulators have access to the skills and tools they need to support compliant businesses. The latest report has just been published – for more information please contact Christopher.Hartley@rec.uk.co
• Following strong representations to HealthTrust Europe, challenging them on several aspects of their new Total Workforce Solutions II tender, we understand that the tender deadline has been extended to the end of July, and there have been some amendments to rates.
• We have also had meetings this week with the Employment Agency Standards Inspectorate, HMRC and the Department for Business, Energy & Industrial Strategy. If you’re interested in our campaigning work and want us to raise issues with government, get in touch at policy@rec.uk.com.
• Our Covid-19 hub provides a one-stop-shop for all you need to know on how the pandemic has affected the recruitment sector and what support the REC provides. We have updated the Coronavirus Job Retention Scheme for Furloughed Workers document to reflect the latest information about redundancy and furlough.

Research corner

The latest KPMG and REC Report on Jobs survey indicated a further drop in hiring activity during June as clients continued to freeze or cut back on their recruitment plans due to the COVID-19 pandemic; but there were signs that we have hit the bottom of the curve and are on the slow start to the way back up.

Key findings were:

• Softer, but still steep, falls in permanent placements and temporary billings
• Quickest rise in staff supply since the start of 2009
• Starting pay continued to fall as vacancies decline further.

In better news, job postings have been growing. Look out for our next Jobs Recovery Tracker published tomorrow, for a detailed breakdown of the regional jobs market.