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£126m scheme seeks to encourage employers to take on young people not in education, employment or training
Article from the Guardian……
Nick Clegg will vow to deal with the “ticking time bomb” of teenagers who are not in work, school or training.
The deputy prime minister is due to announce on Tuesday a £126m scheme to get 16- and 17-year-olds back into employment or education.
The initiative, which is part of the government’s youth contract scheme, announced last November in a bid to tackle youth unemployment, charities and businesses will be invited to bid for contracts worth up to £2,200 to take young people on.
They will receive an initial payment up front, and more money when the youngsters show progress.
At least 55,000 “neets” – those not in education, employment or training and who have no GCSEs at grades C or above – are expected to benefit.
Clegg said: “Sitting at home with nothing to do when you’re so young can knock the stuffing out of you for years. It is a tragedy for the young people involved – a ticking time bomb for the economy and our society as a whole.
“This problem isn’t new, but in the current economic climate we urgently need to step up efforts to ensure some of our most troubled teenagers have the skills, confidence and opportunities to succeed.”
This group of teenagers has been singled out because evidence suggests that unemployment early on can have a permanent effect on earning potential.
By 42, someone who has been frequently unemployed as a teenager is likely to earn up to 15% less than their peers, the Department for Education said.
The announcement comes less than a week after the latest unemployment figures showed that the numbers of 16- to 24-year-olds not in work increased by 22,000 to 1.04 million in the three months to December.
Figures for the third quarter of last year, showed that more than a million 16- to 24-year-olds (1,163,000 – almost one in five) were considered neets.
The Sun have an article in the papers today which makes some interesting reading…..
The total number of people out of work leapt by 48,000 last month to 2.67million — a 8.4 per cent unemployment rate. But youngsters are bearing the brunt of the jobs crisis gripping Britain. The number now out of work is up 22,000 to 1.04million. That’s a staggering 22 PER CENT unemployed. Even more worrying, long-term youth unemployment has doubled over the past year. It’s a harsh reminder of the 1980s when chart-toppers UB40 released One in Ten — a scathing comment on official statistics showing unemployment rising to 10 per cent. Female unemployment has risen by 91,000 in the past 12 months to 1,123,000 — the highest level for 23 years. More than 300,000 women have been jobless for at least a year.
The number of people claiming Jobseeker’s Allowance rose by 6,900 in January to 1.6million. It is the 11th consecutive monthly rise. A record number of people are taking part-time jobs — up 83,000 to 1.35million over the last three months.
On a more positive note, the number of people IN work increased by 60,000 to 29million. And the number of vacancies rose by 11,000 to 476,000. Ministers said the figures showed the job market is stabilising. But Labour accused the Government of creating a “jobless generation”. Welfare reform minister Lord Freud said: “We are by no means out of the woods yet. “With more people in the labour market we know that competition for jobs is tough and we will continue to make it our priority to find people work. But with more in employment and a rise in vacancies, it is clear the private sector is still creating jobs.”
Labour leader Ed Miliband said: “Month after month, we see unemployment rising. And we see a Government which has dangerous complacency and simply carries on with an economic strategy that is not working.
“It is a tragedy that so many young people are out of work in this country. We should be offering them real hope.
“We say tax the bankers’ bonuses and use that money to create real jobs for young people.”
TUC general secretary Brendan Barber said: “These figures are bad, although thankfully not quite the disaster we saw at the end of last year. With one in three jobseekers looking for work for over a year and around six unemployed people for every job, the Government’s mantra that there are plenty of jobs out there just doesn’t ring true.”
But business leaders said there was cause for cautious optimism.
CBI director general John Cridland said: “The unemployment situation continues to be very worrying, especially for young people.
“But it’s positive that jobs are being created in the private sector. This month’s data confirms last month’s tentative signs of a recovery in private sector hiring.”
The north west saw the biggest rise in unemployment of any UK region between October and December. According to the latest figures from the Office for National Statistics, the number of unemployed people in the region rose by 26,000 in the quarter to hit 319,000, or 9.3 per cent of the working population. In Greater Manchester just over 86,000 people were claiming JobSeeker’s Allowance in January, up 5.2 per cent from 82,000 in December. The number of young claimants aged 16 to 24 increased by nearly 1,000 on the month to reach 27,000. Baron Frankal, director of economic strategy at New Economy, said: “We have been saying over the last few months that employers may start to shed jobs if prospects do not improve and with the UK now looking increasingly likely to head back into recession, things could get worse on the jobs front before we see any real significant signs of improvement.” Nationally, unemployment hit a 16-year high, jumping by 48,000 to 2.67 million or 8.4 per cent, the worst figure since the end of 1995. Youth unemployment increased by 22,000 to 1.04 million, which includes 307,000 in full-time education who were looking for work. And a record number of people are working part-time because they cannot find full-time jobs – up by 83,000 over the latest quarter to 1.35 million.
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