London's Hiring Boom at Risk
Angela Rayner faces warnings about potentially undermining the recovering job market with stringent workers' rights reforms, as new data reveals a surge in hiring intentions across London.
The Recruitment Employment Confederation (REC) has reported an unexpected increase in hiring plans in the capital, mirroring a national trend of rising employment intentions.
According to the survey, a net balance of 33.2% of London employers intend to expand their permanent staff within the next three months, compared to 18.4% across the rest of the UK. Looking further ahead, over the next four to twelve months, the figures stand at 35.3% for London and 15.3% for the entire UK.
Kate Shoesmith, deputy CEO of the REC, stressed the need for careful consideration as the Government plans a major overhaul of workers' rights. She noted recent positive shifts in the labour market and called for this optimism to spread to businesses across the UK.
The King’s Speech confirmed plans for a new Employment Rights Bill, part of a so-called 'New Deal' for workers. Deputy Prime Minister Angela Rayner, leading this initiative, aims to establish the Fair Work Agency, a watchdog with substantial authority to enforce workers' rights. Other measures include banning "exploitative" zero-hours contracts and updating trade union legislation to better align with the modern economy.
These proposals have sparked controversy among business leaders, who fear the reforms might hinder their ability to hire seasonal staff. Additionally, some union leaders have opposed Labour’s plans for a formal consultation with industry.
"We urge the government to work with us as they develop plans for the new Employment Rights Bill and the proposed Industrial Strategy, so it is underway sooner rather than later," Shoesmith added.
The REC highlighted that its members are seeing demand for staff across various sectors, including accounting, construction, engineering, nursing, catering, and IT.
Reflecting on the potential impact of these reforms, it’s worth recalling the words of business magnate Warren Buffett: "In the business world, the rearview mirror is always clearer than the windshield." This sentiment underscores the importance of learning from past economic adjustments to navigate future reforms successfully.
