Work Foundation Director suggests UK economy reforms to make UK employment more inclusive

Following the latest Office of National Statistics (ONS) labour market figures, Ben Harrison, Director of the Work Foundation at Lancaster University, suggested that long-term investment and reform are needed to make UK employment more effective and inclusive.

He added that the country needs an Employment White Paper "to strengthen worker rights and protections to be fit for the 21st century".

This is after Harrison commented on the government's plans to "double down on its approach of increasing welfare sanctions, notionally intended to get those out of work into any job and those in part-time work to up their hours".

However, the Director of Work Foundation stressed that the government, doubling down on its approach, will not help the UK economy grow, nor will it aid individuals in sustainable employment.

He continued, "But it will acutely increase the stress and anxiety of low-income workers and their families."

Harrison said the recent figures show the inflation crisis drives young people to work, causing a rise in UK employment. Employment rose by 53,000 people - 0.2 percentage points, as many young people aged 16 to 24 move away from economic inactivity.

He pointed out the fact that more people are getting employed doesn't mean that workers are still not being underpaid.

He said, "This should not mask the fact that real pay is down 2.5% on the year for workers, with those in the public sector hit hardest despite moderate pay growth that continues to fall short of double-digit inflation."

Worried about the "double-digit inflation" in the country, Harrison listed employers, job seekers and workers as being affected by the economic situation.

He believes if the employee shortage persists, it may become a crucial political subject matter in a few months.

Although, the UK Chancellor believes the 6.6 million people of working age who are not currently in employment returning to the workforce can make an impact.

In addition, Jane Gratton, Head of People Policy at the British Chambers of Commerce (BCC), said older workers require job seekers' support, well-suited careers advice and immediate re-training platforms to aid in bringing back their experiences and skills to the UK employment workforce.

She continued by saying businesses should take part by making use of "flexible working policies, wherever possible", and also encourage the training needs of staff.

Most importantly, Gratton said the government should improve the Shortage Occupation List "to help firms fill urgent job vacancies outside the UK when they cannot recruit locally".

Gratton added that the list should comprise "jobs at all skill levels with clear evidence of a national shortage".

The Head of People Policy at the BCC said, "Businesses are crying out for people to fill job vacancies at all skill levels, and this must be the number one focus for the government if it's serious about economic growth."

This is coming after the BCC reported only one in three businesses are confident their profits will increase in the coming year.

She noted there still remain a large number of vacancies, presently sitting at 1.134 million, stressing that "this is stopping firms in their tracks".

She said, "It means they are struggling to meet the orders on their books, and it puts any plans for growth far out of reach."

Furthermore, Kate Shoesmith, Deputy Chief Executive of REC, a recruitment industry, said recruiters and business groups are convinced there's been a hold in economic growth due to labour shortages in UK employment.

Shoesmith advises that it is only when employers and government work together that they will be able to "draw more people, from a range of backgrounds", into the UK employment sector.