Two years on from the start of the government’s New Deal youth employment scheme, education and training remains as high as ever on the national agenda of economic concerns.
New Deal makes progress with changes planned
The total number of young people helped to get work or training under the New Deal stands at more than 179,000, based on latest available figures to the end of 1999. Some 24,300 have come through the Environment Task Force, 25,400 through the voluntary sector option and 63,200 are in full time education and training.
Employment minister, Tessa Jowell MP, marked the second anniversary of the start of the New Deal in twelve ‘pathfinder’ areas by announcing a ‘ten point plan’ to build on what is perceived to have worked well. Measures include testing, help for the four in ten youngsters who lack basic numeracy and literacy skills, and compulsory lessons in personal presentation. The government is studying the success of private sector intermediaries such as Wildcat Corp in New York which has secured training and jobs on Wall Street for some of the most socially disadvantaged people. Similar intermediaries are likely to be encouraged in the UK. Contact DfEE Enquiries on 020 7925 5555 (http://www.dfee.gov.uk)
New Deal results in controversy
Controversy followed the release in December of data by National Institute of Economic and Social Research on the first eighteen months of the New Deal. Sushil Wadhami, who is also a member of the Bank of England monetary policy committee, said the net reduction in youth unemployment due to the scheme was only 30,000, with some more getting into work sooner. But employment minister, Tessa Jowell MP, says 10,000 young people are getting out of unemployment each month, with half directly attributable to the New Deal. Both are agreed that extra economic activity and higher tax revenues mean the New Deal is close to self-financing. Contact Employment Service Research and Development on 0114 259 6217 (report references ESR33 and ESR34)
Learning and skills launch
Education and employment secretary, David Blunkett MP, launched on December 14 a detailed prospectus for the new Learning and Skills Council, the centrepiece of government plans to close the skills gap between Britain and other advanced economies. Being created by legislation currently going through Parliament, it will have a budget of £6 billion and will be responsible for six million learners, many in small and medium sized firms. The LSC and the local councils replace the existing TECs in England and Wales, and business is to have substantial influence within the new arrangements.
Nick Reilly, Chairman and Managing Director of Vauxhall Motors , is leading a group of corporate executives advising how to ‘take the skills message out to businesses across the country’. TEC National Council is warning that the new proposals risk devaluing work-based training compared to the academic route. Contact DfEE Publications on 0845 602 2260 (http://www.dfee.gov.uk)
Gas pilot loan portable
Speaking at the launch of the third report of the Skills Task Force, education and employment secretary, David Blunkett MP, commended gas industry plans to trial a new form of staff loan scheme. Where an employee has borrowed to train but moves on, the new employer will pick up the loan repayment and the industry will underwrite any risk of a default. Last year only 128 fitters joined the registered council (CORGI), well below the replacement number needed in an industry of 100,000. This is intended to act as a model for other industries.
The Skills Task Force, chaired by Chris Humphries of the British Chambers of Commerce , released its report, Tackling the Adult Skills Gap , on January 12. Among recommendations were:
-long term training loans for individuals, repayable depending on subsequent earnings;
-2% reduced tax for small firms achieving Investors in People;
-the Small Business Service to promote best practice and sharing of approaches among small and large firms. Contact DfEE Enquiries on 020 7925 5555 (http://www.dfee.gov.uk)
Union learning centre opens
The Public and Commercial Services Union has opened the first trade union learning centre to deliver training and development to its members. The centre is part funded by Electronic Data Systems (EDS) and will concentrate on information and communications skills, targeting secretaries, typists, clerical and office support staff in Whitehall and the Inland Revenue. Contact DfEE Enquiries on 020 7925 5555 (http://www.dfee.gov.uk)
Partnership Fund Assessors appointed
The nine member panel to assess bids to the new £5 million Partnership Fund were announced on 17 January, including three executives from Tesco , Stagecoach Holdings and Anglia Water . Half funding is available over five years for projects which champion good employee relations and partnerships at work. Contact DTI Enquiries on 020 7215 5000 (http://www.dti.gov.uk)
Comment
Is New Deal working? Alas, the available evidence does not yet allow an authoritative answer. DfEE statistics proudly say 60,000 employers have “signed up” but not how many have actually employed people nor which types of firm have offered subsidised jobs nor what happened to those jobs when the subsidy ran out. Certainly, many large companies report few New Deal hirings, despite initial enthusiasm to get involved. Take BT as an example, one of the UK’s largest employers: with 120,000 employees, it recruits more than 7,000 people a year but pledges in its Social Report only 250 New Deal places for the current year.
Perhaps what matters is that unemployment among young people continues to fall whatever the cause. If so, the real challenge lies ahead, now that those able and willing to work are getting jobs. As the New Deal is extended to other groups, the hurdles to overcome get higher – the long term unemployed, those with disabilities, single parents, a hard core of youngsters who dropped out of school years ago, those facing discrimination. Indeed statistics show young people from minority ethnic communities are less likely than their white to counterparts to move on from New Deal schemes into permanent work, despite having better qualifications.
How can individual companies help? Historically, they have adopted a twin track approach, both with direct recruitment and getting involved through the community programme with TECs, enterprise agencies, support for voluntary sector training schemes and the like. As the former becomes harder and harder, large companies need to redouble their efforts on the latter. The coming system of Learning and Skills Councils and the national Small Business Service open opportunities to try new ways – as David Irwin, SBS chief executive, argued in our last edition.
One idea is to mirror the success of mentoring in schools. The Employment Service says the most effective element of the New Deal is the personal adviser, coaching and supporting the individuals. Time to expand employee volunteering schemes, with support and incentives for staff to help address the skills gap?
Two years on from the start of the government’s New Deal youth employment scheme, education and training remains as high as ever on the national agenda of economic concerns.
Is New Deal working? Alas, the available evidence does not yet allow an authoritative answer. DfEE statistics proudly say 60,000 employers have “signed up” but not how many have actually employed people nor which types of firm have offered subsidised jobs nor what happened to those jobs when the subsidy ran out. Certainly, many large companies report few New Deal hirings, despite initial enthusiasm to get involved. Take BT as an example, one of the UK’s largest employers: with 120,000 employees, it recruits more than 7,000 people a year but pledges in its Social Report only 250 New Deal places for the current year.
Perhaps what matters is that unemployment among young people continues to fall whatever the cause. If so, the real challenge lies ahead, now that those able and willing to work are getting jobs. As the New Deal is extended to other groups, the hurdles to overcome get higher – the long term unemployed, those with disabilities, single parents, a hard core of youngsters who dropped out of school years ago, those facing discrimination. Indeed statistics show young people from minority ethnic communities are less likely than their white to counterparts to move on from New Deal schemes into permanent work, despite having better qualifications.
How can individual companies help? Historically, they have adopted a twin track approach, both with direct recruitment and getting involved through the community programme with TECs, enterprise agencies, support for voluntary sector training schemes and the like. As the former becomes harder and harder, large companies need to redouble their efforts on the latter. The coming system of Learning and Skills Councils and the national Small Business Service open opportunities to try new ways – as David Irwin, SBS chief executive, argued in our last edition.
One idea is to mirror the success of mentoring in schools. The Employment Service says the most effective element of the New Deal is the personal adviser, coaching and supporting the individuals. Time to expand employee volunteering schemes, with support and incentives for staff to help address the skills gap?
COMMENTS