What could the upcoming election mean for recruiters?

  Published: 25th June 2024

A general election brings with it many potential changes for every business sector, and this includes recruitment. Political changes can have a profound impact on everything from economic policies and labour laws to business regulations and market confidence.

But while we may be uncertain about anything definite for now, there are some expected changes that recruiters should prepare for. Below, we’ll take a look at some of them in more detail.

Economic stability

Political uncertainty often leads to economic uncertainty which can have several repercussions, particularly on business growth. Companies may delay investment decisions or decide to pause recruitment for the time being until the climate stabilises.

This may also mean that agencies may struggle to obtain the capital required to grow their business, or funding to support the day-to-day running of their company from traditional lenders such as banks. This may lead to an increase in support from alternative financial providers, such as invoice finance from Zodeq.

Immigration policies

A new government’s stance on immigration is something that could significantly impact the labour market by either limiting the pool of available talent with stricter policies or by making it easier for businesses to hire international staff with changes to visa regulations.

A more progressive approach may also benefit our workforce with an increase in diversity and inclusion.

Sector-specific impact

Changes in policy will naturally affect different sectors in different ways depending on the policy, the sector and what stance the new government will take, as mentioned above with immigration.

Expected changes in policy, such as increased support for digital transformation and tech innovation however are likely to drive targeted growth for tech companies, driving demand for skilled workers in IT and other related fields.

Social policies

Changes to social policy affecting healthcare, childcare and housing can also have an impact on recruitment and retention. In particular, policies that support affordable childcare and flexible working can enable more parents to enter the workforce, thus widening the talent pool for recruiters.

Addressing the skills gap

A widening skills gap in many sectors, including healthcare, is something that a new government would be expected to address. If change is successful, we could see an increase in skilled labour, which would make it easier for recruiters to find candidates for specialised roles, such as nurses, midwives and doctors, all of which are currently in high demand for the healthcare sector.

Ultimately, recruiters in all sectors should be prepared for change, and this includes having a reliable finance facility in place to ensure your cash flow remains stable, regardless of the political outcome. For more information on how Zodeq can support your business, speak to us today.