Workers unsure about the government’s New Deal for Working People

Workers in the UK are lukewarm towards the “New Deal for Working People,” a cornerstone of the recently introduced Employment Rights Bill. This ambivalence is coupled with a significant lack of awareness about their current workplace rights and their employers’ stance on various aspects of the deal. These insights come from the latest Robert Half Jobs Confidence Index (JCI), an economic confidence tracker developed in collaboration with the Centre for Economics and Business Research (Cebr).

According to the data, only 40 percent of UK workers believe the New Deal for Working People will have a positive impact on their work lives, while a similar proportion (44 percent) think it will have no impact at all. Interestingly, just 9 percent anticipate a negative effect. The younger workforce, particularly those aged 18-34, shows more optimism, with 51 percent of this group expecting the New Deal to benefit them.

However, a significant portion of workers, about 36 percent on average, are uncertain about their current access to the measures proposed in the New Deal. This lack of clarity indicates that employers might face challenges in implementing these changes effectively, as employees are not fully aware of the rights and benefits already available to them. Without better communication from employers, the intended benefits of the New Deal could be diluted, reducing the potential positive impact on the workforce.

Beyond the New Deal itself, the report underscores broader economic concerns, particularly in relation to skills and productivity. Labour productivity, measured by output per hour worked, fell by 0.3 percent on an annual basis in Q2 of this year. This decline highlights a persistent issue for the UK economy: the skills gap. As Robert Half notes, addressing this gap is crucial for boosting productivity, wages, and GDP in the long term.

Matt Weston, Senior Managing Director UK & Ireland at Robert Half, emphasizes the importance of a balanced approach to the New Deal’s implementation. “We welcome any changes that enhance workforce wellbeing,” Weston notes, “but it’s striking that a large proportion of UK employees remain unsure about the impact of the New Deal on their jobs. The fact that so many are unclear about their current entitlements suggests a significant communication gap between employers and employees.”

Weston also stresses the need for thoughtful consideration of the costs and resources required to implement these changes. He advocates for a gradual rollout and emphasises that the conversation must also include the skills agenda. “To truly boost productivity and protect workers’ rights, we need a stronger partnership with employers, especially in the context of the emerging Growth and Skills Levy,” Weston concludes.

The findings suggest that while the New Deal for Working People aims to improve workers’ rights and conditions, its success will largely depend on how well it is communicated and integrated with broader economic strategies focused on skills and productivity.