The creation of an employers’ charter may not increase the number of opportunities for umbrella contractors or regular workers.
According to Dr John Philpott, the chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), policymakers should be aware of the growth potential of the UK economy before overhauling employment legislation.
Dr Philpott said that the number of opportunities for umbrella contractors will be dictated by labour demand and not by the rules and regulations surrounding the hiring of staff.
He said that it is “widely agreed” that the UK has a strong and flexible labour market which has already helped the economy get back onto the road to recovery.
“However, although policy initiatives and business pledges to further enhance job creation potential – including those discussed at the prime minister’s jobs summit – are welcome, they are likely to have only a marginal impact on the employment outlook in 2011,” he added.
Recently, the Recruitment and Employment Confederation said that many employers are set on expanding their workforces in the coming year as most sectors of the British economy return to growth.