What Impact Will The Election Result Have On The UK Job Market?
With the Conservatives taking the country’s reins for the next five years, we’re taking a look at the pledges of the winning party and how these may affect the UK’s job market…
We’ve already experienced big changes since the election, with record numbers of jobs going live online following the big day. It’s clear businesses are feeling far more secure post-election and may be moving on projects that had previously been “on hold”.
Manifesto proposals are sure to impact the labour market and include the following:-
- Plans to scrap national insurance contributions for under -21s– making it easier for companies to extend offers to young people.
- Plans to eradicate exclusivity clauses in zero-hour work contracts. (Many zero-hour work contracts contain a clause that prohibits an employee working for another company besides itself, despite the fact that zero-hour contracts do not guarantee work)
- Minimum wage is set to increase to £6.70 by the Autumn and a proposal to scrap income tax for those working at least 30 hours a week and earning the National Minimum Wage.
- Aims to help create 2 million new jobs over the next 5 years, as well as a further 3 million new apprenticeships – increasing the number of people in work and broadening the number of opportunities.
- With a particular focus on youth employment, more businesses are expected to hire apprentices, improving the options for employment and training for the younger generation.
- Reducing corporation tax to help companies invest and grow.
- Investing in an improved infrastructure through better roads, rail services and broadband facilities/speeds, making it easier for businesses to reach customers.
- Increasing the entitlement of free childcare for working parents from 15 hours per week to 30 hours per week for children aged between 3-4 – enabling parents to increase working hours and afford mortgage etc.
Of course, this is only a snippet of the manifesto and we’re sure they’ll be more to talk about in the coming months, but for now, let’s wait and see what the new government may bring.