latest recruitment and employment headlines
Employment Rights Bill: The UK government recently introduced the Employment Rights Bill as part of its "Plan to Make Work Pay." Key reforms include making flexible working the default unless employers can prove otherwise, ending exploitative zero-hours contracts, and enhancing protections for pregnant workers. New agencies will also be established to enforce rights like holiday pay and statutory sick pay
Migration and Labour Market Reforms: To reduce dependency on overseas labour, the salary threshold for Skilled Worker visas has increased, and the shortage occupation list has been abolished. These measures aim to prioritize UK workers and encourage domestic recruitment. This aligns with the £2.5 billion "Back to Work" plan to support long-term unemployed and disabled workers
Future Proposals: The government is considering further reforms, such as introducing a "Right to Switch Off" to protect workers from being contacted outside working hours and mandating large employers to report ethnicity and disability pay gaps
The latest UK employment figures, covering July to September 2024, show that 33.31 million people aged 16 and over are in employment, with an employment rate of 74.8% for those aged 16-64. This represents a slight annual increase of about 210,000 people. However, the unemployment rate has risen to 4.3%, with 1.49 million people unemployed—an increase of approximately 80,000 from the previous year.
Economic inactivity, referring to individuals not working or seeking work, has decreased, with 9.25 million economically inactive people and a rate of 21.8%. Notably, the number of job vacancies continues to decline, standing at 831,000 from August to October 2024, yet still above pre-pandemic levels. Wages have seen real-term growth, with average earnings rising 2.3% annually, including bonuses
In December 2024, several significant developments are influencing employment and recruitment in the UK:
Labour Market Trends: Employment levels in the UK remain high, with a slight decline in vacancies. The total number of vacancies fell by 34,000 to 841,000 between July and September 2024, marking the 27th consecutive quarterly decrease. The largest drops occurred in sectors like human health and social work activities, and wholesale and retail trade
Economic Inactivity: There is a continued focus on economic inactivity, with key factors such as health issues and early retirements contributing to the trend. The employment rate remains robust, but the number of people not seeking employment or available to work is still notable
Employment Legislation Changes: Recent amendments to employment laws are making waves. Employers now have new duties to prevent sexual harassment under the Worker Protection (Amendment of Equality Act 2010) Act 2023. Additionally, employees gained the right to request flexible working from day one of employment, which will likely influence future recruitment strategies and workplace policies
Employment Rights Bill: Looking ahead to 2025, the UK government is set to introduce the Employment Rights Bill, proposing significant changes such as removing the two-year service requirement for unfair dismissal claims and more restrictions on "fire-and-rehire" practices. This is expected to have a major impact on the recruitment landscape, especially in terms of employment contracts and flexibility
These updates indicate both a tightening labour market in certain sectors and continued shifts in workplace rights and conditions, with significant implications for recruitment and retention strategies
Sources:
Office for National Statistics
.Gov