REC highlights challenges and opportunities for the recruitment industry in 2008

A possible economic downturn, the threat of new regulations from Whitehall and Brussels and ongoing Trade Union attacks are some of the key challenges ahead for the recruitment industry.

However, the Recruitment and Employment Confederation is upbeat about the prospects in 2008 and will be working with members to address ongoing threats as well as highlighting new opportunities and continuing to promote the contribution of the industry to the UKís economy and labour market.

In terms of the general economic climate, the CBI has this week warned of a tough year for British business as it grapples with the global credit crunch and rising food and energy costs. However, the CBIís Director General Richard Lambert also sounded a positive note by commenting that the UK economy is likely have a soft landing, despite these big challenges.

Commenting on the general outlook for the UKís labour market, REC Director of External Relations Tom Hadley says: ìSo far, the labour market remains in good shape despite the claims in some quarters of a job creation slow-down. It is crucial to avoid self-fulfilling prophecies through headline grabbing and often unsubstantiated scare stories on jobs.

ìThe effective provision of both temporary and permanent workers will remain crucial to the performance of both public and private sector employers and we must not loose sight of some of the longer-term resourcing needs.
ìIn particular, demographic changes over the next 10-15 years will continue to have a massive impact on a number of key sectors with employers facing a huge challenge of replacing retiring employeesî.

On the legislative front, key challenges for the industry in 2008 include Trade Union campaigns for more regulation on the industry, ongoing pressure for a political agreement on the EU Agency Workers Directive, the implications of the pensions review for temporary workers and calls for an extension of the Gangmaster Licensing regulations to other sectors. In addition, the Governmentís Comprehensive Spending Review will continue to impact on procurement of recruitment services and a number of specific regulations will impact on specialised agencies within the different REC Sector Groups.

Commenting on the legislative outlook for 2008, the RECís Head of Public Policy Anne Fairweather says: ìThe agenda for 2008 is choc full of issues with direct implications for recruitment agencies and employment businesses. As a result, it is more important than ever that the industry presents a strong collective voice and that we continue to enhance our circle of influence amongst decision makers in Whitehall and Brussels.

ìAs well as building on the successful national and EU lobbying activities taken forward over the last year, our aim is to help members make the most of new business opportunities ñ for example, those linked with the Governmentís review of the Welfare systemî.

The REC External Relations team will continue to lead industry-wide lobbying campaigns on the issues mentioned above as well as on a range of other areas that impact on the industry. REC members will be provided with regular updates and will be invited to have direct input into our lobbying activities ñ in particular, through REC regional meetings and REC Sector Groups.