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Paradoxical effects of the job retention scheme and workers from the European Union (EU) not returning to the United Kingdom amid the pandemic-induced crisis are among the factors behind current labour market shortages, Confederation of British Industry (CBI) president Karan Bilimoria told the Recruitment and Employment Confederation’s (REC) annual conference recently.
He highlighted the importance of training, reforming the Apprenticeship Levy and creating new technical education routes into careers. He also called on the government to update the shortage occupation list in various categories.
He said action is needed now to bolster the country’s competitiveness and growth potential and an adequate supply of staff is critical for securing the economy’s recovery.
He cited a CBI survey last November that found that two thirds of employees believe businesses have done a good job in ensuring employee safety during the pandemic.
As the latest report from the REC and KPMG showed overall candidate availability during the past quarter declined at its quickest rate since 2017, Bilimoria said it is a big challenge, not just for individual businesses that cannot find the people they need, but also for the country’s longer-term economic recovery.
Policymakers need to respond now as autumn will be too late, he said. Where there are clearly evident labour shortages, businesses should be allowed to hire from overseas, he said.
The Apprenticeship Levy is a barrier to training investment for too many businesses. CBI would like to see that transformed into a ‘Lifelong Learning’ Levy, helping companies fund the training they need, he added.
Fibre2Fashion News Desk (DS)
Paradoxical effects of the job retention scheme and workers from the European Union not returning to the United Kingdom amid the pandemic-induced crisis are among the factors behind current labour market shortages, Confederation of British Industry president Karan Bilimoria told the Recruitment and Employment Confederation's annual conference recently.