On Monday, 9th September, the newly established Labour Market Advisory Board, appointed by Work and Pensions Secretary Liz Kendall MP, held its inaugural meeting. This board is a distinguished collective of experts from business, industrial relations, and academia, assembled to address what is being termed the “greatest employment challenge for a generation.”

What’s the Big Issue?

The UK is grappling with a notable employment crisis. It is the only G7 country whose employment and inactivity rates have yet to return to pre-pandemic levels. Currently, nearly 2.8 million people are out of work due to long-term sickness, impacting not just individuals and families but also affecting businesses and the broader economy.

What’s the Board’s Role?

The Labour Market Advisory Board is responsible for formulating new ideas and initiatives for the Work and Pensions Secretary to consider. At their first meeting, they discussed innovative approaches to address underlying issues that prevent people from joining the workforce, such as poor physical and mental health. The Board also examined strategies to help the government achieve its ambitious target of an 80 per cent employment rate.

What Could This Mean for Businesses?

  1. Localised Approaches to Employment: There are indications that a White Paper due this autumn will reveal plans to devolve power to local areas, allowing them to implement tailored work, health, and skills strategies. This could lead to more localised support for businesses, with solutions designed to address specific regional issues.
  2. Overhauled Jobcentres: Plans are underway to merge jobcentres with the National Careers Service, potentially leading to more streamlined services that could help businesses find skilled workers more efficiently.
  3. Youth Employment Initiatives: The anticipated White Paper may include proposals for a new youth guarantee for 18-21-year-olds. If your business has faced challenges in attracting young talent, this initiative could present new opportunities.
  4. Focus on Health and Well-being: With the Board’s emphasis on tackling 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 boosting productivity.

Why Should You Care?

While the specific effects of the government’s plans on day-to-day business operations remain to be seen, changes in recruitment, training, and employee well-being could have significant implications. Staying informed about these developments is crucial, as they may present new opportunities for growth and advancement.

See: Government Action to Tackle the Greatest Employment Challenge for a Generation