The current election campaign has focused on a number of aspects of the UK employment market ranging from the minimum wage to the creation of a significant number of new jobs but what has become clear is that the direct manifesto promises of all parties are only a small part of the underlying challenge to employment sustainability. By Steve Thompson-Martyn – Managing Director, Career Directed Solutions.

 

Over the last three to four years whilst we have experienced unprecedented low interest rates and falling inflation a quiet revolution has been taking place within the employment market. Two key trends have emerged; firstly a greater European centric approach which has embraced a more global focus for many companies, and secondly, an increase in flexible employment which has supported smaller entrepreneurial businesses to grow and adapt at a time of high global competition.

The forthcoming UK election is one of three key events which is threatening to undermine the confidence of employers both home and abroad in the UK job market. The Scottish election in Autumn 2014 was most significant, not for its result, but in prompting a sense that the nationalist agenda in the UK centred around economic prosperity was not settled but was merely fanned. The current election campaign is not only amplifying this issue as the minority parties lead us into cross party politics, but uppermost is the UK’s position in Europe which is sending  signals to multinational companies that the UK is not unconditionally committed to European partnership and as such raises questions of employee migration in the future.

The second issue around zero hour contracts is equally loaded. It is critical that every citizen has a right to a living wage but the zero hour contract tool allows not just those in specific sectors such as foodservice to flex their workforce and offer those in need of a secondary income to participate, it critically allows small entrepreneurial enterprises to grow and prosper. The micro business community is a rich opportunity for those moving jobs particularly in rural and remote communities. The ability to offer flexible employment is often critical as workloads are variable and precarious. Variable cost rather than fixed cost growth is a key tool.

The employment market in the UK has shown signs of a lack of confidence even though the overall economic indicators are healthy, and  there are reports that employers are committed to recruitment , the subsequent recruitment processes show hesitation, risk aversion and indecision. For all those contesting this election it is critical to send the right signals to employers as well as employees.