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Recrutiment & Employment Confederation
Policy

Labour shortages

Labour shortages and workforce planning

Driver 3

With the end of the Covid restrictions in mid-2021, the number of job vacancies rose at unprecedented rates, at the same time industries across the UK faced record labour and skills shortages, with many members reporting the tightest labour market they’d ever experienced. The REC conducted a survey of members to understand the scale of the issue, which sectors were most affected, if there were any common causes in more than one industry, and to develop solutions to alleviate some of these shortages.

Solutions such as new training offers, better workforce planning, how to attract and retain candidates and how the new immigration system could also play a role.

The data collected from the survey, enhanced by case studies from members, was absolutely vital for this campaign. And so far, we’ve seen some encouraging success, including:

  • Invitations to Select Committee oral evidence sessions
  • Parliamentary questions tabled
  • A number of parliamentary and ministerial meetings secured

Some of our asks have already been addressed but we know we can do more. We will keep pushing for effective workforce planning to deliver the recovery the UK needs.


Campaign asks

Based on our research and engagement with members, the REC developed a number of asks to address labour and skills shortages.

  • Set up a new cross-government and industry forum: This is separate from the temporary taskforce set up to look at supply chain issues – what we want to see is a permanent forum which deals with workforce planning and includes industry experts.
  • Broaden the apprenticeship levy and increase funding for training at lower skill levels: To improve progression and transition opportunities for everyone, especially lower-skilled and temporary workers.
  • Allow flexibility in the points-based immigration system and a low-skilled visa route: Allowing firms in the worst-affected sectors, like health, care & logistics, to access staff when there is urgent need.
  • Increase focus from businesses on workforce planning, staff engagement, attraction and retention policies: Firms need to raise workforce planning up to the senior leadership level, and work with key professional partners like recruiters to boost performance, productivity and staff wellbeing.

REC writes to Matt Warman MP about the Future of Work review

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Last week, the Prime Minister asked Matt Warman MP to lead a review into how the government can best support a thriving future UK labour market. As part of the review, Mr Warman will look at how the government could best shape our labour market so it is fit for the future, including short and medium-term barriers and the challenges that the labour market might face, such as the role of automation. He is also expected to explore the role of local labour markets in facilitating access to good jobs as we level up across the country, as well as where skills development is most needed to drive future economic growth.

The REC has written to Matt Warman MP offering our insights and expertise on how government can best support a thriving labour market and how the recruitment industry can play a vital role in that. More detail on the review can be found here.

 


Public affairs activities

This shows how we represent our industry in parliament, influencing thinking to achieve change.

Parliamentary questions

Keep up to date with the rest of our parliamentary questions.

Official portrait of Alex Cunningham crop 2

Question by Alex Cunningham - for Department for Business, Energy and Industrial Strategy

Labour

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the implications for his policies of the findings of the Recruitment and Employment Confederation, published 14 September 2021, that labour shortages are the main concern of 88 per cent of recruiters for the remainder of 2021.

Paul scully

Answer by Paul Scully

Conservative 

The Government is working closely with industry to address sector challenges, which are being faced by countries around the world.We have expanded the Seasonal Workers Pilot to 30,000 visas for workers to come to the UK for up to six months; and have introduced measures to help tackle the HGV driver shortage.

Full answer here

Official portrait of Alex Cunningham crop 2

Question by Alex Cunningham - for Department of Transport

Labour

To ask the Secretary of State for Transport, what assessment he has made of the effectiveness of the Driver Certificate of Professional Competence; and whether he plans to amend the requirement for that certificate to help tackle driver shortages.

Official portrait of Andrew Stephenson MP crop 2

Answer by Andrew Stephenson

Conservative

In 2016, the Government published a post-implementation review of the Driver Certificate of Professional Competence (DCPC) 2007 regulations. The review considered the extent to which the regulations improved road safety and increased the professionalism of driving as an occupation.

View full answer here

Official portrait of Alex Cunningham crop 2

Question by Alex Cunningham - for Department for Business, Energy and Industrial Strategy

Labour

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent discussions he has had with the Home Secretary on the introduction of temporary visas for low skilled workers to supply sectors reporting labour shortages.

Paul scully

Answer by Paul Scully

Conservative

My Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy has regular discussions with my Rt. Hon. Friend the Home Secretary on a range of issues, including making sure businesses have appropriate access to talent from across the world so that we can build back better from the pandemic and support the national economic recovery.

View full answer here.


Achievements

Our main goal is to achieve our asks and ensure our industry is represented at the highest levels of government. Here are some of the things we’ve achieved so far.


Labour and skills shortages survey analysis

 

We collected data from across the industry to understand the scale and complexity of the labour and skills shortages, here are our findings.