Young People out in the cold

Young People out in the cold

Employment Rights might mean fewer opportunities for young people.

James Reed of Reed Employment on BBC Radio4 Today Programme [10th Sept 24] commented that the number of vacancies was down [compared to the same period last year] and that employers were deferring recruitment decisions because of economic uncertainty. 

James identified that of the raft of employment rights to be enacted in October the change to ‘Rights from Day One’ was a serious concern for employers. The Daily Telegraph concurred [10th Sept 24] stating that the ‘majority of bosses were put off hiring’ by forthcoming worker rights reforms.  

The Low Pay Commission has recently recommended a rise of 6% taking the National Minimum Wage [or National Living Wage] to £12.10 p/h in April 25. It seems likely that the wage bands will be further reduced & likely leaving just two bands: the National Minimum Wage and an Apprentice or Trainee Rate. 

The reforms, though well-intentioned, could result in a two-tier workforce – permanent employees and a high reliance on temps - such as in the Netherlands. This might make it even more difficult for young people to get a foot on a career ladder unless they elect to do an apprenticeship as being on the full rate NMW would make them unaffordable to SME businesses. 

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