New government should focus on people to boost productivity in labour market

On 4 July, a new Labour government took the helm. At Pursuit, we’re not political, but we understand that when a new party takes power there’s inevitably change. But what does a new government mean for the labour market?

A period of big changes is a great time to take stock and review goals. On a personal level, change within the workplace is an opportunity to review achievements and set out career goals.

Similarly, it is important for any new government to reflect, review and create new goals for the labour market. The way that people work has changed massively over the last few years. People are keener than ever to work flexibly, whether in terms of hours or their workplace.

Leading trade body, the Recruitment and Employment Confederation (REC), suggests the new government must aim for a people-focused approach to labour market improvements. The REC has set out four main areas of focus for the new government:1

  • – Understanding today’s people and labour market challenges.
  • – Supporting our labour market transition by preparing for the future.
  • – Boosting workforce productivity and driving down inactivity.
  • – Regulating for a sustainable and dynamic labour market.

The new government must understand that there has been a huge transition within the labour market. There is more demand for temporary and flexible work, plus this type of work allows for more people to access the job market. They must work with industry experts, such as recruiters, to understand the challenges the labour market is facing.

They must also understand and address the barriers to work that people face. For example, the REC suggests expanding eligibility for 30 hours’ childcare entitlement to parents or carers in training or education. Changes like these can help reduce barriers to work and allow more people to access the workforce.

Understanding how people wish to work, and removing barriers to work, would greatly improve the labour market.

Any period of big change can come with uncertainty. However, we believe the government should take stock of the past, review where the labour market is at, and set out goals for improvement based on the REC’s recommendations.

At Pursuit, we support people to achieve their career or business goals. We pride ourselves on our ability to match the right candidate to the right organisation. Get in touch to have a chat with one of our friendly team to discuss your recruitment needs by calling 01245 362 500 or emailing

1 The REC’s General Election Hub.