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| REC says fragile labour market needs more help |
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Caring Times, February 2010
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The Pre-Budget Report included specific measures for helping job-seekers but failed to deliver means of stimulating demand, according to the Recruitment & Employment Confederation (REC) - the representative body for the UK recruitment industry.
The report came on the same day as the latest 'Report on Jobs' data which shows the sharpest increase in demand for staff for 28 months. However, the labour market remains fragile which is why measures are needed to help business and stimulate job creation as well as provide support for job-seekers, the REC says.
Commenting on its implications, Kevin Green, the REC's Chief Executive said: 'This was a crucial pre-budget report for jobs. Whilst we welcome measures to support jobseekers - such as extending training or work for under 25s after six months and funded internships - the Government has not gone far enough in terms of stimulating demand for staff. The REC had recommended National Insurance 'holidays' for young people: instead NI contributions are set to double from 2011.
'The Chancellor explicitly mentioned the crucial role of the UK's flexible labour market in limiting unemployment. The way that new employment regulations - in particular, the EU Agency Workers Directive - are implemented will be an acid test of the Government's commitment to protecting the viability of flexible working options'.
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