This article was published in February 2024. Please see latest research here.
Following today’s announcement of the UK's entry into a recession, the Association of Professional Staffing Companies (APSCo) urges the government to adopt proactive pro-growth policies to stimulate the economy. With the latest GDP statistics revealing a downturn, APSCo emphasises the critical need for targeted measures to bolster the economy and support businesses nationwide.
In response to the economic challenges facing the UK and ahead of the Spring Budget on March 6th, APSCo has proposed a comprehensive set of policies to address key issues hindering growth and employment opportunities. These include:
- Excluding highly skilled workers from the Agency Workers Regulations to encourage hiring and investment.
- Broadening the scope of the Apprenticeship Levy to align with current skills requirements.
- Facilitating greater government collaboration with businesses to establish regional skills hubs and enhance training initiatives.
- Introducing more flexible visa policies tailored to attract and retain highly-skilled workers, thereby addressing labour shortages in critical sectors.
- Ensuring regular review and refinement of Off-payroll (IR35) regulations to maintain a balanced and conducive environment for both businesses and contractors.
Read our Spring Budget submission to HM Treasury here.
APSCo's latest Recruitment Trends research further underscores the severity of the economic downturn, with permanent and contract job vacancies in January 2024 hitting record lows.
Commenting on the economic downturn, Tania Bowers, APSCo Global Public Policy Director, said:
As the UK grapples with economic challenges, we must adopt proactive strategies to reignite growth and create opportunities for businesses and workers alike.
By implementing targeted pro-growth, we can address critical issues such as skills shortages, regulatory ambiguity, and unfair labour practices, thereby laying the foundation for a more resilient and competitive economy.
