Speaking at the Job Board Summit 2014 John Nurthen, executive director of global research for Staffing Industry Analysts, reported that the UK staffing market is set to grow by 7% next year, paralleling the anticipated growth for the industry globally. A factor that renders the Autumn Statement, all the more significant for the event staffing and wider recruitment industry.
Presenting the Autumn Statement to Parliament on 3rd December2, Chancellor George Osbourne announced that the UK has the fastest growth in the G7 and that there are more people in work than ever before. Employment is at a record high of 30.7 million (an employment rate of 73%), increasing faster than in any other G7 country.
The overall growth in employment reflects both self-employment and employed staff, with self-employment accounting for 14.7% of total employment in the three months to September 2014. Recent ONS Analysis shows that an increased number of people are remaining in self-employment since 2008, suggesting a structural change in the labour market, rather than people resorting to self-employment because they can’t find other work.
Youth unemployment is falling and employment for those aged over 50 has fallen in the past year, resulting in a rise in the working-age labour market participation rate. Latest earnings figures show that pay growth is strengthening, with an increased National Minimum Wage (currently £6.50/hr) supporting those on lower incomes.
But how will the Government’s plan affect recruiters and in particular, temporary event staffing agencies?
The Government is abolishing employer National Insurance contributions for young apprentices under 25 and for all employees under 21, for earnings up to the upper earnings limit, in support of the employment of young people, making progress towards full employment and creating a more highly skilled job market.
NICs Employment Allowance
Over 850,000 employers have benefited from the NICs Employment Allowance and 500,000 will not pay NICs in 2014-15, bringing down the overall cost of employment.
The personal allowance will be increased to £10,600 in 2015-16, an increase of £100 on the current tax year. This is worth £705 to the typical taxpayer and aims to encourage more people into employment.
The government is currently helping parents by reducing the cost of childcare, extending the right to flexible working and introducing shared parental leave. The government plans to further support working parents by expanding start up grants available to childcare businesses.
On the whole the event staffing industry can expect to see an increase in applications from young people, part-time workers and working parents who are looking for a flexible solution to generate an income, encouraged by the new provisions for these groups of workers.
2 All data taken from the Autumn Statement 2014 unless stated otherwise;