Labour’s plans for employment and skills – business voices are crucial

Since the country made its choice on 4 July, ushering in a new Labour government, we have witnessed a flurry of policy announcements and commitments. Dedicated to change and growth, this action-oriented government has come out of the starting blocks at pace. Prime Minister Sir Keir Starmer has made clear his mission to “take the brakes off Britain” and tackle the country’s biggest barriers to growth and progression.

As outlined in last week’s King’s Speech, the new government plans to bring forward a number of far-reaching changes – many of which were outlined in their Plan to Make Work Pay – to enhance workers’ rights, get more people into work, form a new Industrial Strategy Council, and transform the country’s approach to skills and training. These legislative priorities are clear and timely indicators of Labour’s commitment to security, stability, fairness and opportunity for all.  

And this ambition is welcome. Acute skills and people shortages remain evident across multiple industries. As last week’s ONS statistics attest, the total number of people in the UK workforce has shrunk overall compared to last year, while economic inactivity remains at a stubbornly high level and unemployment rates are still on the rise. And our own research consistently tells us that eight in ten UK employers still aren’t able to find workers with the skills they need. With the situation further exacerbated by long-standing economic stagnation, high living and labour costs and low productivity, this latest ONS data adds a further note of urgency to the legislative priorities of the new government. 

But the devil, as they say, is in the detail. While the King’s Speech made reference to some big ambitions, some equally big questions still remain unanswered. Most crucially, regarding the nature and timeline of the new legislation’s consultation with businesses and industry bodies. We welcome Labour’s plans to build a more resilient workforce and economy and are supportive of legislative initiatives which can deliver a more inclusive, productive and dynamic labour market for the UK. But we, like many others, are eager for more detail.  

I was pleased to see some of that detail emerge on Monday with Starmer’s announcement of the launch of Skills England. This plan for transforming the country’s skills landscape is a welcome strategy, together with the promise of greater flexibility of the apprenticeship levy for which we have long been calling. Crucially, though, this new body needs to be responsive to the needs of businesses – employers must have a real voice in shaping this strategy. 

Growth, of course, is both positive and necessary – but I maintain that it must be a people-powered growth. Ambition of this scale requires a skilled workforce. ManpowerGroup has long been calling for a people-first approach to securing future prosperity for our country – you can see more of this in our recent manifesto – and it’s encouraging to see many of these asks being reflected in the government’s legislative commitments. I firmly believe that the best way to ensure the future growth of our country is to unlock the potential of its people. Better skills, leading to better quality jobs that provide sustainable earning potential, work-life balance and wellbeing – done in ways that can be equitably accessed and are affordable to businesses – are, in my view, what’s needed to deliver a more inclusive and dynamic labour market. 

Last week, ManpowerGroup held a webinar in partnership with the CBI, Recruitment & Employment Confederation (REC) and corporate law firm Eversheds Sutherland, to discuss the implications of Labour’s policy announcements on employers. What we heard was a strong view that business voices will be crucial to shaping and informing the substance of these initiatives. A partnership approach is essential. Kate Shoesmith, Deputy CEO at the REC, pointed out that, unless a proper consultation forum is implemented, there is a danger of creating more caution among employers when it comes to hiring decisions. If this government wants to engender growth, then clarity and certainty for employers is required as part of their new industrial strategy. And on a reciprocal basis, employers would do well to focus on the workforce planning, training and technologies needed now, in order to better position themselves for growth over coming months.   

In conclusion, the UK urgently needs a blueprint for moving more workers and employers into higher-value jobs with the capacity to bolster innovation, productivity and growth across the UK. The direction of travel for this new government is clear – but how, and how soon, will we get there? We eagerly look forward to seeing further detail regarding the government’s proposed consultation processes and timelines associated with these new Bills, so that businesses, industry bodies and unions all have a voice in shaping the new legislation, its implementation and its oversight. We need to ensure there’s an equitable share of voice and fairness for everyone. I look forward to working with the Prime Minister and his new government to help achieve those goals.