Monday, 24 August 2009

Calls for work placement subsidy for unemployed teens

The Chartered Institute of Personnel and Development (CIPD) has called for work placements subsidies for unemployed 16 and 17 year-olds.

The CIPD said the 'uphill struggle' facing GCSE school-leavers is exemplified in their latest quarterly CIPD/KPMG Labour Market Outlook (LMO) of more than 900 employers.

The results show 16 to 18 year-olds are currently less likely to be hired than the long-term unemployed, with 24 per cent of employers planning to hire from this age group during the current quarter.

In contrast, almost two-thirds of employers are hiring from the 19-24 age category, with a similar proportion of employers planning to recruit older workers.

Gerwyn Davies, CIPD public policy adviser, believes a six-month work placement subsidy of £1,250 per person could offer 'vital help' for 30 per cent of 16 to 17 year-olds who have been unemployed for more than six months.

Mr Davies said: 'School-leavers seeking work this year face a difficult enough task finding an employer willing to take on young people, let alone find a job.

'These results suggest that government policy needs to be changed to give similar help to unemployed 16-17 year-olds as that which is given to other targeted unemployed groups. The September guarantee of a training or education place for young people is welcome but is unlikely to offer a full solution to the emerging youth unemployment and NEET crisis.

'The work placement subsidy would therefore be a useful addition to the armoury of measures targeted as mounting youth joblessness and go some way towards helping pressured companies do their bit for what is becoming a national crisis.'

CIPD say their figures consistent with the official figures from the Labour Force Survey, which show that 16-17 year-olds are suffering most of all in the jobs market.

More than 200,000 16-17 year olds – one in three – are now unemployed and actively seeking work. Most alarmingly, the number of 16-17 year-olds who have been unemployed for more than a year has increased by almost 100 per cent, to over 20,000 during the past year.

'Lack of experience' was found to be the main barrier to recruiting young people.ADNFCR-708-ID-19325474-ADNFCR

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