Posted on 24/02/2015 by Dave Irons
An increase in plant hire jobs could be good news for the wider UK workforce, by helping more companies to take on new employees at the bottom end of the ladder.
With the British economy still emerging from recession, Guardian economics blogger Larry Elliott recently wrote that unemployment is down, but wage growth is being driven only by bonus payments, and not by rising basic salaries.
Readers commenting on the piece argued that, with an influx of new workers on the lowest salaries, it is logical that overall wage growth would appear minimal, even if those higher up the employment ladder have received pay rises.
But several also pointed out how the supply of entry-level workers affects investment elsewhere.
One, using the name 'theindyisbetter', wrote: "While employers can easily find new employees for entry-level jobs, they don't need to invest in plant, and so productivity will not grow.
"Only when unemployment stops falling will there be a reason for investment in plant, leading to increased productivity, leading to higher average wages."
However, there is a third option - and that is where people working in plant hire jobs have a major contribution to make.
By ensuring plant is available on a hire basis, productivity can be assured even at companies not investing in purchasing plant of their own - and this is good news for everything from firms' bottom line, to government tax receipts, to employment and pay figures for the UK workforce in general.