Business is key to boosting recovery

Malcolm Hyde, Regional director of CBI South East
Malcolm Hyde, Regional director of CBI South East

by Malcolm Hyde, regional director of the CBI South East

People running our businesses have been telling me they were more optimistic than many media commentators and official forecasts.

It’s clear from recent news stories that events have caught up with business sentiment and the recovery is taking root, with business leaders having a spring in their step compared to this time last year.

But as the recovery takes hold, we need to make sure that all citizens benefit and that growth is properly balanced across the UK.

Businesses must support employees to move up the career ladder, while also giving a helping hand to young people taking their first tentative steps into the world of work.

We have just had really positive news on the jobs front, showing that jobs are now being created consistently across the UK.

For the first time since the start of the recession, 2014 will see most firms increasing the size of their workforce, boosting their graduate intake and the number of apprentices they take on.

It’s important to remember our flexible labour market has worked to save jobs and keep our economy going through a drawn-out downturn.

Those who propose to damage that flexibility with inappropriate regulation put the very system that has kept unemployment here far lower than elsewhere at risk. They also miss the point. It’s not just the floor we should be concerned with as Britain has a strong base of employment rights. It is also the escalator – how we ensure people move on from that first job.

For the first time since the start of the recession, 2014 will see most firms increasing the size of their workforce, boosting their graduate intake and the number of apprentices they take on

The good news is that wages will pick up in the course of this year as growth beds down.

But there are still far too many people stuck in minimum wage jobs without routes to progression – and that’s a serious challenge that businesses and the government must address.

We need to widen the gateways into higher-skilled work for far more people, including those for whom a degree may not be the best option.

Of course, that doesn’t mean the end of the traditional three-year degree and universities will continue to play an important role.

But at the moment, employers and potential students simply don’t have enough information on study options like higher apprenticeships and part-time higher education.

We need a UCAS-equivalent vocational system to help raise awareness and parity of esteem for alternative routes to higher skills.

Once people are in work, businesses can do more to help their employees reach their full potential.

More than half of firms have or are considering mentoring schemes and a quarter are looking at issues that may be holding staff back.

With a general election less than 18 months away, politicians must remember that businesses are absolutely crucial to driving the recovery home, creating jobs and raising living standards for all.

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