Employment legislation 'locking unemployed out of workforce'

Increasing amounts of regulation could lock people out of the workforce, expert have warned, indicating that different approaches should be taken for small and large businesses.

The Federation of Small Businesses (FSB) warned that employment legislation, while benefiting those already in employment, could lock disadvantaged groups out of the workforce.

It explained that regulation increases the risks linked to hiring new recruits, and this is amplified in the case of small businesses, which could affect the employer's willingness to recruit in the first place.

The FSB contended that this is a particularly important issue for recruitment, as more than eight in 10 unemployed people that find work do so with a small business.

John Walker, National Chairman, Federation of Small Businesses, warned:"Taking a one-size-fits-all approach doesn't always work.

"Too many policymakers don't think about the consequences of policy for small firms or for the people that are on the outside of the jobs market trying to get in."

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Posted by Wayne Bly
 

Source: The Sales Director News