Action needed to help employers

A BANK of England report setting out risks facing the UK jobs market adds to a growing list of concerns over the outlook for employment and whether the government may be discouraging as many jobs as it is attempting to create.

The Bank, in its latest Quarterly Bulletin, warns of "considerable uncertainty" over the labour market, despite better recent news on jobs, and highlights risks such as a weak recovery, job cuts through public sector retrenchment and more firms going under if banks bear down on companies that have struggled to make it this far through the recession.

Separately, from the British Chambers of Commerce, comes a warning that a "relentless flow" of employment law is stifling competitiveness and putting at risk future job creation. It says basic workplace protections have been supplemented with "burdensome" rights, such as extended time-off provisions, as well as "unreasonable" health and safety restrictions. Problems included an "unacceptable" 20-week delay in starting employment tribunal cases, and employers being responsible for the health and safety of staff who worked from home, the report said.

The government will be hoping fresh labour market statistics, due tomorrow, will continue the better-than-expected trend seen in recent months. While further rises in unemployment might be blamed on the severe and prolonged winter, the factors acting as a drag anchor on longer-term trends need close attention – and remedial action.