This spate of youth joblessness is largely driven by ill-health; the proportion of NEETs who reported a work-limiting condition has increased by 70% in ten years, the Health Foundation said yesterday.
The Big Issue has previously spoken to young people about the ‘demoralising’ reality of job-seeking.
“I’m running into a brick wall,” 22-year old Charlie told us last month. “I want to be employed. I want a future. I don’t have one until I get that employment.”
Catherine Parsons is managing director of Big Issue’s recruitment arm Big Issue Recruit, which helps people facing barriers to work find employment. She described the reforms as “positive” – but urged the government to invest in “deeper” supports like job coaches.
“With turnover among younger workers still high, we must ensure these roles lead to lasting employment,” she said
“Our young people must be better equipped with the skills and support they need to thrive on the job; we’ve seen time and time again that deep engagement with a good job coach is the difference between success and failure in this regard.”
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“The government should expand provision so job coaches can continue supporting young people when they obtain work – making sure that the hire is working for both employee and employer. Big Issue Recruit has seen real success with this model, with the deeper engagement by job coaches helping 92% of our candidates stay in-post by the six-month mark.”
What support will young people get to boost employment?
Alongside the new ‘job grants,’ the government will offer an apprenticeship incentive of £2,000 for each new employee aged 16 to 24 taken on by a small- and medium-sized enterprise.
They will also expand the Jobs Guarantee to a wider age range, from 18-21 to 18-24, to create more than 35,000 extra subsidised jobs.
The changes are backed by a £1bn fund, the DWP said, taking the total investment into the youth guarantee and the additional investment in the growth and skills levy to £2.5bn over the next three years.
“Backing young people is one of the most important investments we can make in this country’s future,” said prime minister Keir Starmer.
Youth charities and employment think tanks have largely welcomed the news – with caveats.
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Stephen Evans, chief executive at Learning and Work Institute, welcomed the government’s support. Being NEET can do “long-term damage” to a person’s career prospects, he added.
But he urged the government to cast the net wider, including young people who don’t claim benefits.
“To make a real dent in the numbers… we still need decisive action to engage and support the three in four NEETs who too often miss out on support as they are not on unemployment-related benefits where most of these measures are targeted,” he said.
“The trailblazers are a positive start, but there is more to do.”
The government has not yet announced the eligibility criteria businesses will have to meet to qualify for the scheme.
These will be key to judging its success, said Ben Harrison, director of the Work Foundation at Lancaster University.
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Only firms that offer “secure work, fair pay and roles that offer progression for the future” should be eligible, he said.
“Research shows that any job isn’t always better than no job,” he added.
“If these new grants simply subsidise businesses to offer low quality jobs, they will risk exacerbating one of the key challenges keeping young people out of the labour market in the first place.”
Young people are already twice as likely to find themselves in a severely insecure job than older workers.
However, there are concerns that the government is planning further cuts to disability benefits for young people as part of these reforms.
Evan John, policy advisor at charity Sense, said: “It’s extremely concerning that the government seems to be laying the groundwork for reforms to disability benefits, fuelling anxiety among disabled people already struggling as the cost of living rises.
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“We’re particularly concerned about the prospect of the health element of universal credit, which supports disabled people with conditions that limit their ability to work, being cut for young disabled people. Scrapping this benefit will not help more young disabled people find work – instead it risks pushing them further into poverty and isolation by increasing the barriers they already face.”
Ministers have already confirmed plans to remove the universal credit health element for new claimants aged 18 to 21. These cuts will come into place from April.
“The government needs to rule out further cuts to disability benefits, and focus its efforts instead on investing in more support to help disabled people find and stay in employment,” John added. “While some disabled people with complex needs cannot work, others may be able to with extra support – this could make all the difference in the government’s plans to get more disabled people into employment.”
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