The Government’s new Jobs Guarantee has begun placing young people into paid employment, with ministers saying the scheme will give thousands of people who have been out of work for an extended period a route into jobs, training and longer-term careers.
The first cohort of participants has started work through the programme, which is aimed at 18 to 24-year-olds who have been claiming Universal Credit and looking for work for 18 months.
According to the Department for Work and Pensions, the scheme will provide fully funded employment for up to 25 hours a week for six months, with jobs matched to participants’ skills and additional support intended to help them overcome barriers to employment.
More than 90,000 young people are expected to be supported over the next three years. The programme forms part of a wider £2.5 billion government investment aimed at tackling youth unemployment and increasing the number of young people who are earning or learning.
Work and Pensions Secretary Pat McFadden visited Boots to meet some of the first participants as they began roles in administration, retail and warehouse support.
The Government says the programme is particularly focused on people who have spent a long period outside the labour market, arguing that extended periods without employment can make it increasingly difficult for young people to regain a foothold in work.
According to the DWP, the Jobs Guarantee is initially being rolled out in areas including Birmingham and Solihull, the East Midlands, Greater Manchester, Hertfordshire and Essex, Central and East Scotland, and South East and South West Wales.
The scheme is due to be expanded later this year to all eligible 18 to 24-year-olds who have been receiving Universal Credit and looking for work for 18 months.
The announcement comes against the backdrop of continuing concern about the number of young people who are not in education, employment or training.
A House of Commons Library briefing published on Friday examined the latest figures and government policies aimed at reducing the number of young people classified as NEET. According to Parliament’s research, the term covers 16 to 24-year-olds who are neither studying nor working, with prolonged periods in this position potentially affecting later employment prospects and earnings.
The parliamentary briefing also highlighted the wider Youth Guarantee, of which the Jobs Guarantee is one component. Government funding is intended to provide young people with opportunities to work, train or undertake apprenticeships.
The figures have given the new employment scheme added significance, as ministers seek to address both youth unemployment and the longer-term economic consequences of young people remaining outside the labour market.
The Guardian reported that McFadden had linked paid employment with improvements in confidence and wellbeing as the Jobs Guarantee got under way. The newspaper reported that the Government sees work not simply as a source of income but as a means of helping young people develop skills, confidence and a clearer route towards permanent employment.
However, the scheme is also facing questions about the quality and lasting value of the jobs being created.
According to The Telegraph, concerns remain about whether subsidised employment will translate into sustainable careers and whether the Government’s wider welfare and employment reforms will succeed in reducing long-term economic inactivity rather than simply moving people temporarily into supported positions.
The Government says the placements are designed to do more than provide short-term employment. Participants will receive bespoke support, including help with confidence and skills, while employers will have the opportunity to assess potential recruits in real workplace environments.
The programme is also being promoted as a way of helping businesses address recruitment difficulties by giving them access to young workers whose employment costs are initially supported by the state.
In Wales, a separate announcement this week confirmed that the first participants had also begun Jobs Guarantee placements in Cardiff, Newport, Merthyr Tydfil, Bridgend, Swansea, Caerphilly and Rhondda Cynon Taf.
According to the Wales Office and DWP, around 3,500 young people in Wales are expected to benefit from the scheme over the next three years. The Government says the programme will eventually be supported by Youth Hubs and other employment initiatives intended to help young people move into sustained work.
The wider challenge remains substantial. Parliament’s latest briefing underlines the scale of the NEET problem, while the Government argues that its employment package will create hundreds of thousands of opportunities for young people over the coming years.
For those starting their first Jobs Guarantee placements, the immediate focus is more straightforward: gaining experience, earning wages and developing skills that could lead to permanent employment.
Whether the six-month placements ultimately deliver that longer-term outcome will be one of the key tests of the Government’s strategy to reduce youth unemployment.