CBI welcomes Government’s ‘Back to Work’ plan to drive growth: Olga Watterich

It’s affecting our international competitiveness too with the UK being the only G7 country with employment not back to pre-pandemic levels.

It is right that the Government is prioritising how to unlock the potential of the UK’s workforce in Yorkshire and the Humber and across the nation.

While the economy is starting to pick up steam and there are signs that pressures in the labour market are cooling, firms are still struggling to find the staff to power their businesses, acting as a dampener on investment and expansion.

Their three-pillar plan includes merging Jobcentre Plus and the National Careers Service to support people into work and those seeking better job opportunities and pay.

A more joined-up approach to tackling economic activity that is more locally responsive to the needs of the population and finally a Youth Guarantee, aiming to create more opportunities for training, apprenticeships or help finding work for all people aged 18 -21 years old.

Alongside these measures we must take action to address the root causes of worklessness, often poor physical and mental health. A health economy needs a healthy workforce.

Employers in Yorkshire and the Humber have a critical role to play here by providing healthcare support to their workers, including preventative measures.

Businesses are willing to play a more proactive role in the health of their employees, but the current tax system discourages it.

By making health support for employees, tax free particularly in areas like Employee Assistance Programmes and early occupational health referrals, we could start to see significant improvements to staff wellbeing.

Forging a new approach for our labour market will also mean building a highly skilled workforce. There are structural changes impacting our economy and labour market, and persistent productivity issues. In the long-term, we need to get more productive by helping firms invest in tech, innovate and support their workers to update their skills.

Between 2017 and 2022 skills shortages in this country doubled to more than half a million, and now account for 36 per cent of job vacancies.

The launch of Skills England and the expansion of the Apprenticeship Levy to offer a wider range of skills training is a significant step in the right direction to improve productivity.

We urge the Government to go further by supporting technology adoption in the form of a Tech Adoption Ambassador and ensuring UK businesses have access to a subsidised programme to adopt technology.

Delivering this program of reform will require a partnership for prosperity between the Government and business. If implemented successfully it has the potential to build a healthy workforce, stabilise the labour market and allow the economy to grow sustainably, raising living standards at the same time.

Olga Watterich is CBI deputy regional director for Yorkshire and the Humber