‘Youth Contract’ will help get young people into work but must be business friendly says Suffolk Chamber

Latest unemployment figures show 22% of young people now out of work

The voice of business in Suffolk has welcomed an announcement by the Deputy Prime Minister but has warned it must be business friendly as the latest unemployment figures show another rise in those out of work with youth unemployment now at 22%.

Nick Clegg MP, the Leader of the Liberal Democrats and Deputy Prime Minister called on businesses to sign up to the government’s £1 billion Youth Contract* aimed at getting young unemployed people into work.

Thousands of companies will receive a letter from the Deputy Prime Minister, Nick Clegg, and Minister for Employment Chris Grayling, calling on them to take up the initiative.

“At a time of high youth unemployment, and especially with today’s latest unemployment figures showing another 48,000 people out of work, any incentives to get young people into the workplace are welcome,” said John Dugmore, the Chief Executive of Suffolk Chamber of Commerce.

“The Youth Contract will go a long way to giving employers the much-needed encouragement they need to hire young people. Employers often spend a large amount of time and money training up those not in education, employment or training (NEETs). The proposal to pay employers half of the minimum wage payment for the first six months will help businesses offset this cost,” he added.

The Chamber added that despite the new measures being introduced by the coalition government it is important that employers can claim this payment in a reliable and the least bureaucratic way possible.

This is especially important for smaller firms who need payment quickly to compensate for the initial costs of recruitment and basic training.

“Employers must have a clear point of contact, and any administrative burden should be kept to a minimum,” John Dugmore added. “Businesses are ready to do their bit, and the Youth Contract will provide a much-needed jobs boost for the young. But this scheme aims to help young people who are removed from the labour market, and could pose a considerable risk for employers.”

“This is why contracts should be as flexible as possible to incentivise more firms to give these young people a chance.”

*The Youth Contract is a package of support worth almost £1billion to help young unemployed people prepare for work and find a job. Employers will be offered wage incentives worth up to £2,275 each if they employ an 18 to 24 year-old from the Work Programme for at least 26 weeks.