The Forum of Private Business has cautiously welcomed a government initiative to expand work experience for young unemployed people - but warned more needs to be done to review the quality of training they receive and free work placements from red tape.
The new scheme will increase the time individuals aged between 18 and 21 are allowed to do work experience without the risk of losing benefits from two to eight weeks.
The total number of people under 25 who are out of work increased by 32,000 to 951,000 in the three months to November - at 20.3 per cent the highest unemployment rate for 20 years. Among those aged 16 to 17 total numbers rose by 27,000 in the same period, according to the latest official figures released last week.
In addition, specialist staff at Jobcentre Plus will now be responsible for matching young people looking for work with employers offering work experience placements.
The scheme was announced by employment minister Chris Grayling ahead of a summit on skills and employment being held by the Department of Work and Pensions.
The forum’s ceo Phil Orford called for a ‘holistic’ approach to tackling youth unemployment.
He said: “This is an important and welcome scheme to improve and expand work experience. If small businesses in the private sector are to lead job creation and tackle unemployment they need a better labour market that includes young, ambitious and talented individuals who know what it takes to thrive in the world of work.
“But we must ensure that processes are in place to monitor the effectiveness of the training provided so that our young people are given the best opportunities possible - we don’t want them to be left sweeping up or just making the tea.”
Orford added: “Further, we know that there are significant barriers to creating permanent jobs, apprenticeships and work placements as a direct result of the tax system and red tape.
“As part of a more holistic approach to youth unemployment and job creation, simplifying tax and reducing regulation is vital in order to free employers to build better pathways to the workplace for young people on benefits or in the education system.”
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