Government needs to ''do more to encourage recruitment''

The coalition government needs to do more in terms of offering employee benefits to attract workers in the jobs market.

A spokesman for the Recruitment Society said the measures taken in yesterday''s (June 22nd''s) emergency Budget were encouraging for staff retention and recruitment.

However, Steve Huxham, chairman of the organisation, said the measures on their own were not enough, especially with a rise in VAT set for January 2011.

"One small step on its own isn''t going to give entrepreneurs enough confidence to start employing people again, so I think you have to look at the wider picture," he added.

Overall, Mr Huxham said the steps to raise the level at which people pay National Insurance and the increase in the income tax threshold were encouraging.

Under measures announced by the chancellor George Osborne, people will not pay income tax on their first £7,475 earned each year - meaning around 23 million employees could be better off.
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