New Labour Market Advisory Board: What it means for your business
16-09-2024
On Monday, 9th September, the newly formed Labour Market Advisory Board, appointed by Work and Pensions Secretary Liz Kendall MP, had its first meeting. This board is no ordinary group—it’s a collective of experts drawn from business, industrial relations, and academia, all focused on tackling what’s being called the “greatest employment challenge for a generation.”
What’s the big issue?
The UK is facing a significant employment crisis. It’s the only G7 country whose employment and inactivity rates haven’t bounced back to pre-pandemic levels. Nearly 2.8 million people are currently out of work due to long-term sickness, which not only affects individuals and families but also has a knock-on effect on businesses and the economy at large.
What’s the board’s role?
The Labour Market Advisory Board is tasked with developing new ideas and initiative for the Work and Pensions Secretary to consider.
At the first meeting, the new approaches were discussed, including how to tackle the underlying problems that keep people out of the workforce, such as poor physical and mental health. The Board also looked at how to help the government achieve its ambitious goal of an 80 per cent employment rate.
What could this mean for businesses?
- Localised Approaches to Employment: There are hints that a White Paper to be published this autumn will show that the Secretary of State plans to devolve power to local areas, enabling them to tackle inactivity with tailored work, health, and skills plans. This could mean more localised support for businesses, with strategies designed to address specific regional challenges.
- Overhauled Jobcentres: Plans are in the works to merge jobcentres with the National Careers Service. This could lead to more streamlined services, helping businesses to find skilled workers more easily.
- Youth Employment Initiatives: The same White Paper is expected to include plans for a new youth guarantee for 18-21-year-olds. If your business has been struggling to attract young employees, this initiative might offer new opportunities.
- Focus on Health and Well-being: With the Board’s focus on addressing the impact of ill-health on economic inactivity, we might see new initiatives aimed at improving workplace health and well-being. This could benefit businesses by reducing absenteeism and increasing productivity.
Why Should You Care?
While it’s difficult to know at this stage how the government’s plans will actually affect day-to-day business life, changes to recruitment and training, employee well-being and productivity all have the potential to affect your business. Therefore, it pays to be aware of what’s happening in these areas, especially as changes can provide new opportunities for growth and development.