Partner Article

CIPD calls for work placement subsidy

As the government launches its January Guarantee for 16-17 year-olds, the Chartered Institute of Personnel and Development (CIPD) has warned that the Guarantee package does not go far enough to address the rise in the number of long-term unemployed 16-17 year olds.

While the CIPD says that it supports the scheme, it believes that it will still leave thousands of 16-17-year-olds unemployed facing a long period of unemployment owing to the supply shortages of apprenticeships and the difficulties this age group has in securing work in a tight labour market.

The CIPD instead suggests a new six-month work placement subsidy of £1,250 for 16-17 year-olds that have been unemployed for more than six months.

Gerwyn Davies, Public Policy Adviser at the Chartered Institute of Personnel and Development said: “Although the January Guarantee is welcome, it is unlikely to offer a full solution to the youth unemployment crisis that will not reach its peak until the second half of 2010. Giving young people education places and formal training opportunities is a laudable aim, and one we support.

“However, while apprenticeships are often seen as the silver bullet, many of our members say that they are not in a position yet to offer apprenticeships, even with a cash incentive. Promising apprenticeships that are not available is not enough. Meanwhile, the extra support for education places has done little to curb the rise in unemployment.”

“The work placement idea however would give more young people the opportunity to learn key employability skills, and give employers greater flexibility around training opportunities. The limited subsidy we’re proposing would be a relatively inexpensive way of preventing the futures of thousands of young people’s working lives being blighted for many years.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .