the youth contract

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The Youth Contract http://www.dwp.gov.uk/youthcontract/key-initiatives/


The Government will invest £126 million over the next three years to support young people aged 16 to 17 who are not in education, employment or training in England. • • • • •

Wage incentives Work experience Sector based work academies Apprenticeship wage incentives Apprenticeships support for disengaged 16-17 year olds


Nick Clegg • http://www.dpm.cabinetoffice.gov.uk/news/1-billion-packagetackle-youth-unemployment • “jobless teens are a ticking time bomb.” • Cash payments to encourage employers to recruit young people. • An extra 250,000 Work Experience places over the next three years, taking the total to at least 100,000 a year. • At least 20,000 extra incentive payments worth £1,500 each for employers to take on young people as apprentices, taking the total number of payments available to 40,000 next year. • Extra support through Jobcentre Plus in the form of weekly, rather than fortnightly, signing-on meetings, more time to talk to an adviser and a National Careers Service interview • focused on equipping young people with the skills and opportunities to gain long-term sustainable employment in the private sector.


Is it enough? • Commenting on the Youth Contract approach, Committee Chair Dame Anne Begg MP, said: • "The Youth Contract is welcome but on its own it will not be enough to address the current unacceptably high level of youth unemployment. Young people need effective support from Government to counteract the disadvantage they have long suffered in the labour market but they also need a return to economic growth and a substantial increase in the number of new jobs." • "Some of the measures in the Youth Contract have been shown to be effective but they will only make a significant impact if all the targets are met. Our concern is that there is a real risk that the Government will fall short of its more eye-catching targets. In particular, past experience shows that 160,000 wage incentives is a very ambitious target in the current economic climate. And 250,000 additional work experience placements for young people may also be unrealistic."


Is it enough? 1. On the new scheme for 16–17 year-old NEETs 2. On wage incentives 3. On the Jobcentre Plus Work Experience scheme 4. The report also comments on closely-related policy areas, including: The quality of vocational education and the proposal to raise the education participation age in England to 18 by 2015 Ensuring proper coordination of the Youth Contract and youth employment and skills policy


BBC view http://www.bbc.co.uk/news/uk19650918 The Guardian View http://www.guardian.co.uk/commentisfree/201 2/sep/19/youth-contract-mollycoddlingbusiness


Microsoft ‘Get on’ http://news.uk.msn.com/blog/newsbite-blogpost.aspx?post=c28524247627-4c53-817f-f490a7a57e1c After austerity.org.uk • http://www.afterausterity.org.uk/?p=245


Generation Lost • http://www.tuc.org.uk/tucfiles/239.pdf


Unemployment falls to 15 month low • http://www.guardian.co.uk/business/2012/oc t/17/uk-unemployment-falls-lowest-ons • 7.9% or 2.5million unemployed • 10.5% on average in the EU (Spain 25%) • 16-24 year olds 20.5% (Spain 50%)


However • Long term unemployment increased by 23% • Gov’t support for unemployed young people fell by 26%. The Youth Guarantee and Future jobs fund were replaced by the youth Contract • Growth in part-time and freelance work. • JRF people were addressing unemployment by seeking low skilled work.


More graduates in low skilled jobs • More than 1/3rd in non graduate jobs.


What are the possible solutions? • How do these align to ethical theory?


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