New employment laws ‘won’t get Britain talking’, business leaders warn

The Labour Party has been warned that attempts to solve Britain’s “serious” unemployment crisis could be thwarted by workers’ rights.

Figures from the Office for National Statistics (ONS) show that the number of ‘economically inactive’ people is at a record high of 9.4 million. This is partly due to the epidemic of long-term illnesses, which is affecting 2.8 million people. This is also close to the highest number ever.

Liz Kendall, the Work and Pensions Secretary, said Britain was facing a “spiralling” economic inactivity and rising unemployment, with the UK the only developed G7 country where employment has not yet returned to pre-pandemic levels.

“This is a terrible legacy and the government is determined to address it,” Kendall said.

However, business groups are warning Labour about its human rights policy, which promises rights from day one such as the right to work from home, protection from unfair dismissal and a ban on zero-hours contracts.

Neil Carberry of the Recruitment and Employment Confederation said: ‘The government must ensure its employment protection agenda does not hold back progress.

A good partnership is necessary to make changes effective for all employees, especially those who want and choose to work flexibly.’

According to the ONS, unemployment is at 4.4 percent, while wages are rising at 5.7 percent per year.

The CBI’s Matthew Percival said a workers’ rights bill would come as businesses face significant pressure on labour costs.