Budget key to “unlocking door” to labour market

14 Mar 2023

Published in: Member News

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Budget key to “unlocking door” to labour market

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Budget key to “unlocking door” to labour market

The Government has a golden opportunity to unlock the labour market by encouraging tens of thousands of people back into work with the Spring Budget, according to a leading recruitment industry specialist. Incentives to mobilise 18-to-24-year-olds and pension tax breaks to bring experienced, skilled workers out of retirement to train the next generation could both help ease the drought of candidates for 1.1 million vacancies in the UK currently.

And Carmen Watson, Chair at Warwickshire-based recruiter Pertemps, believes employers from all sectors and Government departments must work together to make a key intervention and ensure the country is properly skilled to futureproof the economy.

Carmen said: “The Spring Budget is a great opportunity for the Government to help us find a way forward together.

“There are a number of things they can do to unlock the door to the labour market for significant demographics out there that will help us fill the near-record numbers of vacancies we still have.

“Recruitment activity has slowed due to the lingering economic uncertainty which has led to hesitancy around hiring. We still have more than 1.1 million vacancies but jobs fell by 51,000 compared to the last three months – the eighth monthly drop in a row.

“With the rising cost of living crisis, it’s important for Government, recruiters and employers to work together to tackle economic inactivity and address the skills gap.

“A key reason for fewer people being in work remains the number of older workers who did not return to the workplace after the pandemic and the over-55s bracket who can find it more difficult to secure new roles. That is an amazing reservoir of experience and talent that we need to tap to ensure the next generation of workers is properly skilled for the future.”