Latest news with #KateShoesmith
The Star
13-05-2025
- Business
- The Star
Roundup: UK labor market lacks momentum as wage growth slows, unemployment rises
LONDON, May 13 (Xinhua) -- Britain's labor market showed further signs of cooling in early 2025, as wage growth slowed, unemployment edged higher, and job vacancies continued to decline, according to official data released Tuesday. As shown by data from the Office for National Statistics (ONS), the employment rate stood at 75.0 percent in the first quarter of 2025, reflecting a marginal increase from the same period last year, however, the unemployment rate also increased from a year ago. The number of employees on company payrolls in Britain dropped by 47,000 between February and March, with early estimates indicating a further decline of 33,000 in April. Last month, the total number of payrolled employees stood at 30.3 million. Meanwhile, wage growth continued to moderate. Average weekly earnings excluding bonuses rose by 5.6 percent in the three months to March compared with the same period a year earlier, down from 5.9 percent in the previous quarter. Including bonuses, total pay rose by 5.5 percent year-on-year. After adjusting for inflation, real regular pay grew by 1.8 percent. Job vacancies fell by 42,000 in the three months to April, marking the 34th consecutive quarterly decline. The total number of vacancies now stands at 761,000, slightly below pre-pandemic levels. Following recent increases in employment costs, businesses across various sectors are facing growing pressure. Kate Shoesmith, deputy chief executive of the Recruitment and Employment Confederation, described the lack of momentum in the job market as the key issue in Britain. She said the decline of vacancies was an expected outcome of recent rises in employment costs. Following higher payroll taxes and a recent increase in the minimum wage, the retail and hospitality sectors, in particular, have recorded increased job cuts in March and April. The rising cost of employment remains "a major challenge," said Jane Gratton, deputy director of public policy at the British Chambers of Commerce. "Business sentiment has dropped due to the National Insurance increase and other changes to employment policy." "Although vacancies are now more than half a million below their pandemic peak, firms tell us recruitment remains a huge challenge. They are still struggling to find people with the skills they need, which is continuing to drive wage growth and feed into inflation," Gratton added, noting that the situation is likely to get worse for employers in the months ahead. Noting that access to global talent remains the only solution to address urgent skills shortages, Gratton pointed out that the option has become even more costly. Moreover, the British government has been tightening immigrant policies. Prime Minister Keir Starmer announced on Monday that the UK government is increasing the skill thresholds for migrant workers, raising the degree level required, and tightening the English language requirements. The Bank of England lowered its benchmark interest rate by 0.25 percentage points to 4.25 percent earlier this month, but policymakers have stressed the need for more evidence of easing inflation before further rate cuts. Analysts noted that persistent wage growth poses a challenge to the central bank's efforts to curb inflationary pressure. Analysts maintain that the cooling job market reflects pressures from both domestic policy shifts and global trade uncertainties weighing on business confidence.
Yahoo
04-03-2025
- Business
- Yahoo
Zero hour contract ban to include agency workers
Agency workers will be included in a ban on "exploitative" zero hour contracts as part of ammendments to the government's employment reform bill, the BBC understands. The new rules will mean that agency workers will have to be offered a contract guaranteeing a minimum number of hours each week. It is one of a number of additions to the Employment Rights Bill which will be outlined on Tuesday. While unions welcomed the inclusion of agency workers in the ban, the Recruitment and Employment Confederation (REC), which represents the sector, said the change should not "undermine" the "flexibility" that zero hour contracts offer some workers. Agency workers who choose to be on zero hour contracts will also be made eligible for compensation if their shifts are changed at short notice, it is understood. Although the amendments will not spell out what "short notice" means. There are around one million agency staff in the UK, working across areas such as warehouses, in hospitality and within the NHS. The Labour government pledged last year to ban "exploitative zero hours contracts" as part of the Employment Rights Bill. The minimum hours offered in a contract to agency workers will be calculated according to the average number of hours they normally work. The BBC understands that the government is yet to decide whether this will be based on a 12-week reference period or longer. Trade unions have been campaigning for agency workers to be included in the legislative changes to prevent employers getting round the proposed zero hours rules by hiring agency staff. Paul Novak, general secretary of the Trades Union Congress, said the government was right to close this "loophole". He said agency workers "make up a significant proportion of the zero hours workforce and need protections from bad working practices too". But the REC said it was concerned about the change. Its deputy chief executive, Kate Shoesmith, said people choose agency work "for the flexibility it provides at a time and stage in their life" and that the new rules must not undermine that. She added that time should be given "to ensure any legislative changes do not conflict with existing and hard-won protections for agency workers". The REC would "keep working with the government to ensure that," she said. The BBC understands that the government will table 250 amendments on Tuesday. They will include doubling of the penalty imposed on companies that engage in so-called "fire and rehire'' practices. This means that if they fail to properly consult employees before dismissing and then rehiring them on less favourable terms, they could be forced to pay the worker 180 days' worth of pay in compensation up from the current 90 day penalty payment. The amendments also contain a commitment to extend sick pay to workers earning under £123 a week from the first day of their illness. They will be entitled to 80% of their average weekly earnings or statutory sick pay - which is currently £116.75 per week – whichever is lowest. Currently, to qualify for statutory sick pay, a worker must have been ill for three days in a row. There will also be changes to rules around trade union recognition and the ability of unions to take industrial action. The government is proposing that workers will have to give their employers 10 days' warning of any strike action – rather than the existing 14 days' notice. Currently, there can be a ballot for union recognition if 10% of the workforce is a member of a union. The government had been consulting on lowering it to 2% but the proposed amendment will not state a figure and will simply give the secretary of state the power to lower the 10% threshold. Mr Novak said the changes were about ''creating a modern economy that works for workers and business alike'' and that driving up standards "will stop good employers from being undercut by the bad, and will mean more workers benefit from a union voice". Several business groups have been critical of the government for not providing more detail about how the legislation will work in practice. They are unlikely to be satisfied by what's in the amendments. Craig Beaumont, executive director of the Federation of Small Businesses, said that "anyone hoping to see government take serious account of the concerns of small employers looks likely to remain disappointed for the time being". He said: "There is a huge gulf between the stated aims of this bill and the real world negative impact on jobs and growth." Low-paid workers to get 80% of salary in sick pay How will the changes to workers' rights affect you?
BBC News
04-03-2025
- Politics
- BBC News
Zero hour contract ban to include agency workers in employment bill
Agency workers will be included in a ban on "exploitative" zero hour contracts as part of ammendments to the government's employment reform bill, the BBC new rules will mean that agency workers will have to be offered a contract guaranteeing a minimum number of hours each is one of a number of additions to the Employment Rights Bill which will be outlined on Tuesday. While unions welcomed the inclusion of agency workers in the ban, the Recruitment and Employment Confederation (REC), which represents the sector, said the change should not "undermine" the "flexibility" that zero hour contracts offer some workers. Agency workers who choose to be on zero hour contracts will also be made eligible for compensation if their shifts are changed at short notice, it is the amendments will not spell out what "short notice" are around one million agency staff in the UK, working across areas such as warehouses, in hospitality and within the Labour government pledged last year to ban "exploitative zero hours contracts" as part of the Employment Rights minimum hours offered in a contract to agency workers will be calculated according to the average number of hours they normally BBC understands that the government is yet to decide whether this will be based on a 12-week reference period or unions have been campaigning for agency workers to be included in the legislative changes to prevent employers getting round the proposed zero hours rules by hiring agency staff. Paul Novak, general secretary of the Trades Union Congress, said the government was right to close this "loophole".He said agency workers "make up a significant proportion of the zero hours workforce and need protections from bad working practices too".But the REC said it was concerned about the deputy chief executive, Kate Shoesmith, said people choose agency work "for the flexibility it provides at a time and stage in their life" and that the new rules must not undermine added that time should be given "to ensure any legislative changes do not conflict with existing and hard-won protections for agency workers". The REC would "keep working with the government to ensure that," she said. "Fire and rehire" The BBC understands that the government will table 250 amendments on Tuesday. They will include doubling of the penalty imposed on companies that engage in so-called "fire and rehire'' means that if they fail to properly consult employees before dismissing and then rehiring them on less favourable terms, they could be forced to pay the worker 180 days' worth of pay in compensation up from the current 90 day penalty amendments also contain a commitment to extend sick pay to workers earning under £123 a week from the first day of their will be entitled to 80% of their average weekly earnings or statutory sick pay - which is currently £116.75 per week – whichever is to qualify for statutory sick pay, a worker must have been ill for three days in a will also be changes to rules around trade union recognition and the ability of unions to take industrial government is proposing that workers will have to give their employers 10 days' warning of any strike action – rather than the existing 14 days' there can be a ballot for union recognition if 10% of the workforce is a member of a government had been consulting on lowering it to 2% but the proposed amendment will not state a figure and will simply give the secretary of state the power to lower the 10% Novak said the changes were about ''creating a modern economy that works for workers and business alike'' and that driving up standards "will stop good employers from being undercut by the bad, and will mean more workers benefit from a union voice".Several business groups have been critical of the government for not providing more detail about how the legislation will work in are unlikely to be satisfied by what's in the Beaumont, executive director of the Federation of Small Businesses, said that "anyone hoping to see government take serious account of the concerns of small employers looks likely to remain disappointed for the time being".He said: "There is a huge gulf between the stated aims of this bill and the real world negative impact on jobs and growth."
