Labour has been warned efforts to solve Britain’s ‘dire’ worklessness crisis could be derailed by its employment rights.
Office for National Statistics (ONS) figures showed the number of ‘economically inactive’ people was at a near-record 9.4m, partly thanks to the epidemic of long-term sickness affecting 2.8m – also close to an all-time high.
Liz Kendall, the Work and Pensions Secretary, said Britain faced ‘spiralling’ economic inactivity and a rise in unemployment and is the only G7 advanced nation where the rate of employment is not back to pre-pandemic levels.
Liz Kendall, the new work and pensions secretary, said Britain faced ‘spiralling’ economic inactivity as well as an uptick in unemployment
‘This is a truly dire inheritance which the Government is determined to tackle,’ Kendall said.
But business groups have warn Labour over its rights platform, which promises entitlements from day one, including the right to work from home, protection from unfair dismissal and a ban on zero hours contracts.
Neil Carberry, at the Recruitment and Employment Confederation, said: ‘The Government must be careful that its agenda on employment protection doesn’t stifle progress.
A proper partnership is necessary to make changes work effectively for all workers, especially those who want, and choose, to work flexibly.’
Unemployment is 4.4 per cent while wages are rising by 5.7 per cent a year according to the ONS.
Matthew Percival, at the CBI, said a bill on workers’ rights would come as businesses face significant employment cost pressures.
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