Youth Contract Wage Incentive: a view from Ingeus
Thursday 9th May 2013
CESI Youth Unemployment Convention
Dr Vinny Pattison, Head of Policy and Research ([email protected])
8 UK regions
73 offices
283,266 clients (79,701 18-24 yr olds)
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Ingeus and the Work Programme since June 2011
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Context
• A familiar story: economic cycle BUT pre-recession rise
• Periods of unemployment expected but problematic when structural
• WI policy intent: influence recruitment choices, stimulate demand
• WP – structurally unemployed young people:
•Patchy working history
•c.20% have never worked
•56% - lack of experience is their major barrier
• Negative labour market signal!
• Employers want experience and employability skills
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Delivery
• Communication and marketing drive 391,000
5,000+• EST and advisor promotion
• Workshops for employers and clients
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Successes
c.1,350 200
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Delivery and Observations
There have been many positives:
• Increased awareness (issue and recruitment strategy)
• Engaged SME’s and non-traditional employers
• Tipped the balance for some young people – time lag on true impact
• Full labour market impact won’t appear in official stats
However, take up has been low:
• Awareness, marketing and roll out (being addressed)
• Large employers not engaging
• Bureaucracy issues for providers and employers (being addressed)
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Conclusions
• Raising awareness and stimulating demand – c.1,500 evidenced jobs directly (and many more indirectly)
• DWP addressing some key concerns although admin challenges continue
However, with an anticipated underspend can we do more?
• WP – young people most likely to start work
• WI most effective with those closer to work but what about the others?
• 48% don’t have basic literacy, numeracy and IT skills – emp impact
• 38% don’t have level 2 maths and English; 24% struggle to read and write
• Broaden use of WI funding? Integrate with other streams to address core constraints e.g. use to part/fully fund traineeships
• “Employment premium” for disadvantaged
• Post WP support provision