We round up the latest employment news.
Women risk missing out on promotion by working from home
Debbie Crosbie, the chief executive of Nationwide, has raised concerns that women may miss out on career opportunities by working from home more frequently than men. She argues that women need a "physical presence" if they want to progress. She highlighted the benefits of being seen by others and learning from leaders, drawing from her own experience of having a female mentor early in her career.
Nationwide ended its "work anywhere" policy in December 2023, and now requires most full-time staff to come into the office twice a week.
New plan to get ex-offenders into work
Leading UK business figures are spearheading a new initiative to help thousands of offenders secure stable employment in an effort to reduce reoffending rates. Recent data shows that individuals employed six weeks after release have a reoffending rate of 16.8%, compared to 35.3% for those who remain unemployed.
This effort is part of the government’s “Plan for Change,” and involves the creation of regional Employment Councils.
Key points include:
- Employment Councils will bring together probation services, prisons, local businesses, and the Department for Work and Pensions (DWP) to support offenders serving sentences in the community.
- Companies such as Greggs, Iceland and COOK are participating, building on the success of prison Employment Advisory Boards. They report that offenders make motivated, reliable, and trustworthy employees.
- The DWP will provide work coaches to help offenders get ready to work, including providing mock interviews and helping them prepare suitable CVs.
Sharp rise in UK wages defies year-long slowdown
Official figures from the Office for National Statistics (ONS) reveal that wages in the UK are rising faster than anticipated, following a year of slowing growth. Average pay increased by 5.2% in the three months to October, surpassing economists' forecasts of 4.6%.
Key statistics include:
- Private sector pay grew by 5.4%, outpacing the 4.3% growth in the public sector
- The unemployment rate remained steady at 4.3%
- The number of people on UK payrolls fell by 35,000 to 30.4 million between October and November 2024
- The number of job vacancies decreased by 31,000 to 818,000 in the three months to November 2024.
UK faces widening regional skills gaps
A recent report by the Learning and Work Institute highlights significant regional disparities in skills across the UK. The "Worlds Apart" report reveals that Leeds, London and southern cities such as Bristol and Brighton, are more successful in attracting and retaining graduates compared to regions like Greater Lincolnshire and the West Midlands.
Key findings include:
- Two-thirds of adults in London hold higher education qualifications compared to a third in greater Lincolnshire
- In the West Midlands, 27% of adults don’t have GCSE or equivalent qualifications compared to just 9% in West London
- By 2035, 71% of Londoners are expected to have higher education qualifications, compared to only 29% in Hull and East Yorkshire.
The report warns that these gaps are likely to widen, with the skills base in the south of England potentially matching world-leading countries, while other regions risk falling behind.
New TUC report highlights black women's experience of racialised sexual harassment at work
The Trades Union Congress (TUC) has published a new report detailing the experiences of Black women facing racialised sexual harassment in the workplace. The research, conducted by Queen Mary University of London and the University of Surrey, reveals alarming statistics and personal accounts from surveys and focus groups.
Key findings include:
- 65% of respondents experienced sexual harassment at work
- Over a third faced negative, gender-based attitudes, specifically targeted at women and Black women
- 51% said that their mental health had been affected by harassment
- 73% had been bullied or harassed
- 53% encountered racist remarks or comments
- 58% did not report harassment, with 38% believing their complaints would not be taken seriously.
The TUC recommends that organisations adopt a zero-tolerance approach to racialised sexual harassment, implement ethnicity monitoring systems, and provide training on racialised and sex-based harassment. It also calls for the government to extend legal protections through dual discrimination provisions in the Equality Act 2010 and urges trade unions to create dedicated spaces for Black women to share their experiences.
'Charter for Fair Pay' to address income inequality
The High Pay Centre, in collaboration with academic experts, has published a comprehensive 'Charter for Fair Pay' aimed at reducing income inequality and enhancing the rights of workers in the UK. The charter outlines ten key measures across four areas: employment rights, corporate governance, investment and stewardship, and transparency.
Key recommendations highlight the need to effectively implement the upcoming Employment Rights Bill, introduce elected worker directors on company boards, revise the legal duties of company directors, and expand pay ratio reporting.
These proposals aim to empower workers, encourage dialogue, and enhance transparency. The report argues that this will enable employers and employees to negotiate fairer pay outcomes without the need to ask the government to directly intervene.
CBI Chairman criticises Labour’s budget
Rupert Soames, Chairman of the Confederation of British Industry (CBI), has said that the rise in national insurance contributions (NIC) for employers has “bruised” business confidence. The rise comes into force in April. Soames argues that it will increase business costs and could lead to higher inflation and lower growth rates.
He also speculated that the upcoming Employment Rights Bill, which includes provisions for guaranteed hours on zero-hours contracts and day-one rights to claim unfair dismissal, might result in businesses laying off employees before the new regulations come into force.
Shein under fire for their employment practices
During a parliamentary committee hearing, Shein's general counsel for Europe, Yinan Zhu, was accused of "wilful ignorance" regarding the use of cotton linked to forced Uyghur labours in the company's supply chain.
The committee's chair, Liam Byrne, criticized Shein's lack of transparency, especially as the company plans to list on the London Stock Exchange.
New measures to tackle carer’s allowance overpayments
The Department for Work and Pensions (DWP) has published the terms of reference for the Independent Review of Carer's Allowance. The review, led by Liz Sayce OBE, aims to investigate the causes of earnings-related overpayments and recommend measures to prevent future occurrences.
The review will explore how overpayments linked to earnings have accrued, why this has happened, and what changes can be made to reduce such risks in the future. The DWP will focus on supporting those who have already accrued overpayments.
The Carer's Allowance earnings threshold has been increased by £45 a week to £196, and is expected to benefit over 60,000 carers by 2029/30.
The review is expected to end in the summer 2025.
One-third of working parents are under severe stress
A recent study by Bright Horizons Family Solutions reveals that nearly one-third of working parents say they are experiencing severe stress levels. The Modern Families Index, which surveyed 3,000 working parents, highlights that 80% of those reporting high stress find it difficult to focus, and 67% struggle to function effectively.
The key causes of stress are breakdowns in childcare with 65% of men and 62% of women affected. For those with adult caring responsibilities, the impact is even higher, affecting 79% of men and 80% of women.
The study also shows that 73% of working parents consider the extent to which prospective employers support working parents and carers before accepting promotions or new jobs.
There has been a 31% drop in employees who feel their employer is highly supportive of family life. And 70% of respondents are concerned about the impact of increased return-to-office expectations, coinciding with a 22% decrease in the ability to work flexibly compared to last year.
Home Office prohibits sponsoring workers in a personal capacity
The Home Office has updated its guidance to prohibit individuals or households from sponsoring workers in a personal capacity, effective from 31 December 2024. This affects individuals or households wishing to sponsor workers for their personal benefit, where the sponsor is not conducting business or providing a service in the UK.
New sponsor licence applications will not be granted, and existing sponsors will typically have their licences revoked if they now attempt to sponsor workers in a personal capacity. There is one exception to this: individuals or households of diplomats or members of recognized international organizations under the “International Agreement” route will be able to sponsor private servants.
Report highlights challenges for asylum seekers’ right to work in the UK
Focus on Labour Exploitation (FLEX) has released a report titled “I kept waiting and waiting: The realities of asylum seekers’ restricted right to work in the UK.” The report delves into the difficulties asylum seekers face in accessing employment in the UK.
Asylum seekers can only work if they're given permission by the Home Office and are limited in what work they can do. The most up-to-date figures indicate that, in 2022, 15,706 out of 19,231 work permission applications were approved.
FLEX recommends that asylum seekers:
- and their adult dependents are given an unrestricted right to work after six-months
- are given clear, accessible information about their right to work at the point they apply for asylum
- have access to free, non-means-tested, specialist legal advice
- have their claims processed promptly.
Prime Minister unveils ambitious AI blueprint
The UK government has announced a comprehensive plan to use artificial intelligence (AI) to increase national growth and renewal. The Prime Minister said that the government will fully support the AI Opportunities Action Plan, which includes 50 recommendations aimed at integrating AI into various sectors to boost productivity and living standards. He argued that AI could potentially add £47 billion annually to the UK economy.
Key highlights of the plan include:
- Dedicated areas to expedite planning and development of AI infrastructure.
- Major tech firms have committed to significant investments, creating over 13,000 jobs.
- Using AI to reduce administrative burdens to free up organisations to focus on essential services.
- Building a new supercomputer to enhance AI capabilities.
Read more – January 2025
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