Firms slow to sign up for £1bn scheme to give young people
jobs.
With a price tag of £1 billion, the Youth Contract was
billed as the ultimate sledgehammer to attack one of the most stubborn problems
in society: youth unemployment.
Announced last autumn, it brought together a clutch of the
most successful schemes ever devised to help young people into jobs, including
personalised training and wage subsidies of more than £2,000 a placement.
But how has it fared since Deputy Prime Minister Nick Clegg
promised to “make sure every unemployed young person starts earning or learning
again before long-term damage is done”?
The verdicts from employers, unions and MPs are mixed. The
biggest fear is that the Government’s target of creating 430,000 employment
“opportunities” (not the same as full-time jobs) could prove wildly ambitious.
Although former employment minister Chris Grayling wrote to
350,000 employers, the message does not seem to have got through. A recent
survey by EEF, the manufacturers’ organisation, found that none of its members
who answered were taking part.
A third had not even heard of the Youth Contract, while
nearly half knew about it but had no plans to take part. Only one in five was
considering whether to take up the offer.
Labour has accused the Government of being secretive about
take-up figures. Two weeks ago, Liam Byrne, the shadow employment minister,
asked in Parliament how many firms had received money. Employment minister Mark
Hoban replied: “I expect the first set of official statistics on the wage
incentive to be available from early 2013.”
The incentives are real enough. A third of the £1 billion
is to go on incentives — a £2,275 subsidy for employers who take people off the
dole queue, a £1,500 grant for small firms taking on apprentices and £2,200 for
businesses who hire Neets — teenagers not in education, employment or training.
The rest would go into intensive efforts to help young
individuals shape up for full-time work and match them with employers looking
for talent.
But the problem is enormous and has defeated many previous
efforts. Youth unemployment has not fallen below 500,000 in the last 30 years.
When the downturn hit, it rose twice as fast as in other age groups. The most
recent figures showed that more than a third of 16- and 17-year-olds are
unemployed, and a fifth of 18- to 24-year-olds. In London, 120,000 16- to
24-year-olds are unemployed.
Yesterday, a report by the cross-party Work and Pensions
select committee put the Youth Contract scheme on probation. It welcomed its
objectives but expressed concern that it could fail to help those youngsters
most in need, who would only be taken on if employers were give a bigger cash
incentive.
It warned that some local authorities were not fully
engaged, which meant the scheme could fall short. Employers also complained of
a “patchy” quality of service, but they did like the simple two-page
application form. The jury is out on whether Youth Contract will be a success.
What is not in doubt is that London youngsters need help now.
A government spokesman said: “Youth unemployment is a real
challenge for young people, their families and the Government. It’s good to
hear the committee’s welcome for the Youth Contract, but we’re not complacent
about the scale of the challenge.
“Thousands of young people have already benefited from
measures in the Youth Contract and over the next three years the package will
give hundreds of thousands more the chance to earn or learn. As we promised
when we launched it, we will review the measures later this year to ensure they
are having maximum impact.”
Views from Fulham Jobcentre: ‘It’s a struggle to find work,
not enough help is available':-
Marie Kidwell, 43
Lawyer and mother of two
“Young people do need more help to find jobs. Probably too
many go to university. The Government can help to change the emphasis away from
university qualifications.”
Joanna Mrabet, 24
Trying to set up an online business
“Not enough help is available. There do not seem to be any
funds for young people who want to get on through hard work. Youngsters with
ideas should be supported.”
David Bachinski, 20
Unemployed for 10 months
“I would really like to work in the retail sector but it is
very tough. I am getting some interviews but actually securing a job is another
thing entirely.”
Robert Wiggins, 37
Youth worker
“We need to give young people opportunities and job
prospects or they can go to the wrong side of the tracks. I am running a boxing
programme for youngsters and they respond to that.”
Anna Blunden, 22
Travel firm employee
“A lot of my friends have struggled to get jobs after
leaving university. Youth unemployment doesn’t explain totally why there have
been riots but it does contribute to problems.”
Tyrone Rhule, 29
Unemployed
“I just can’t find work and it is so frustrating. I have
been a youth worker but there is nothing around at the moment and I am finding
it a real struggle.”
Source: London Evening Standard, David Cohen, 20th
September 2012
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