An annual study commissioned by Cascade HR has revealed the topics most likely to keep Human Resources professionals awake at night in 2019. The 2019 HR Landscape Report report claims that employee engagement has topped the list for the second year running, with 40 percent of the 423 respondents believing it will be their biggest challenge over the next 12 months. Recruitment and retention were a close second and third (37 percent and 36 percent respectively), followed by absence management (29 percent) and wellbeing (22 percent). It appears similar themes have posed the biggest headaches as 2018 has unfolded too. When asked to reflect on their toughest encounters from the last year, HR directors, managers and executives ranked recruitment as the clear front runner (45 percent), followed by absence management (36 percent), with retention and GDPR compliance in joint third place (35 percent).

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The UK could boost GDP by around £40 billion a year in the long run if it reduces the number of young people not in education, employment or training (NEET) to match Germany, the best performing EU country. Despite making improvements in recent years, the UK only ranks 19th out of 35 countries across the OECD on a PwC index based on a range of indicators of youth employment, education and training. But this is slightly better than the UK’s ranking of 21st across the OECD on a similar PwC index for older workers released earlier this year. Across England NEET rates vary significantly, reflecting the disparity in educational attainment and job opportunities across the country. In 2017, the West Midlands had the highest NEET rate for 19-24 year olds at 16.7 percent, followed by the North East by 16.3 percent. Meanwhile the South East and South West have the lowest rates, both at 11.5 percent (see table below). (more…)

A new IZA World of Labor report published today suggests that workers’ effort may be more responsive to wage incentives and therefore the efficiency costs of progressive labour income taxation larger than previously thought. A fundamental question in economic policy is how labour supply responds to changes in remuneration. The responsiveness of labour supply determines the size of the employment impact and efficiency loss of progressive income taxation for example. The economist Tess Stafford of the University of New South Wales, Australia, summarises a number of recent studies of independent contractors’ labour supply which confirm a key prediction of economic theory: workers work more (in fact, quite a bit more) when earnings are temporarily high.

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