Upload
kail
View
51
Download
3
Embed Size (px)
DESCRIPTION
The Case for Intermediate Labour Markets (ILMs). Tracy Fishwick, InclusionNW Laura Gardiner, Inclusion. Outline of session. The need for action The evidence around ILMs Options for ILMs in the current policy and delivery landscape. The need for action. - PowerPoint PPT Presentation
Citation preview
The Case for Intermediate Labour Markets (ILMs)
Tracy Fishwick, InclusionNWLaura Gardiner, Inclusion
Outline of session
The need for action The evidence around ILMs Options for ILMs in the current policy
and delivery landscape
The need for action
Young people have been hit hardest by economic downturn:
– Youth unemployment increasing faster than unemployment for all other age groups
– Long-term youth unemployment highest in 16 years = lifelong ‘scarring’ effects
– Young people particularly hard-hit by the way employers have responded to this recession
There aren’t enough jobs to meet demand:– Growth forecasts are bleak and worsening– Situation in North West particularly concerning:
Unemployed 16-24 year olds per 16-24 year old recruited, 2010
The need for action
Current programmes are not doing enough:
– Apprenticeships:– Only 12% go to young unemployed people– They are growing 234% for those aged 25+,
compared to only 10% for 19-24 year olds and 21% for 16-18 year olds
– Inclusion analysis of the JCP work experience scheme shows that it appears to be having no additional impact on young people leaving benefits
The need for action
Young people in particular are suffering in the current labour market
+The economy looks unlikely to ‘naturally’ fix this
problem in the short and medium term
+These short and medium term effects have
lifetime impacts
=A strong case for ‘demand-side’ interventions like
waged employment programmes/ILMs
The need for action – summary
Evidence around ILMs
A body of evidence around waged employment programmes:
– ‘Transitional jobs’ in USA: substantial benefits for individuals in the long-term, reduced unemployment in the short-term
– StepUP: large positive impacts, but only for those furthest from work
– Future Jobs Fund
FJF – Background
6-month waged job for unemployed 18-24 year olds in the main (25+ in agreed areas)
An unprecedented programme – speed, scale and budget
Soon after the election...a decision to close it down
100,000 jobs were created and filled in fewer than 2 years
Inclusion commissioned to produce an independent evaluation by seven local areas
FJF – Key benefits A real job and a wage Engaged employers – change in attitudes
and practices towards the young unemployed Voluntary and community sector made a
big contribution Community benefit output Boosted qualifications and career
aspirations Good results for the typically hard-to-reach
FJF – Areas for improvement
More focus on progression More targeting at those most in need of
support (lots of highly-educated and short-term unemployed people included in latter stages)
Better engagement of private sector and growth sectors
More streamlined interaction with other mainstream provision
FJF – Outcomes and value for money
Employment outcomes:– When people left early it was usually to start
another job immediately– Overall job outcome rate: 43%– Impressive sustainment: modelling suggests
86% of jobs will be sustained to 3 months and 56% to one year
Impact:– Participants spent 70 days fewer on benefits,
above and beyond time spent in FJF jobs Value for money:
– Net cost per participant: £3,900– Net cost per job outcome: £9,200 (at job
outcome rate of 43%)
FJF – LessonsWage employment programmes can:
Engage young people with the offer of a job and a wage
Engage employers and encourage them to recruit the young unemployed in future
Produce job outcomes and boost job sustainment
Produce outcomes for hard to help groups Be costly, but less so with effective targeting Provide a boost to stagnant local labour
markets
Options for ILMs today – local government
Schemes are underway or in development:– In Scotland: Community Jobs Scotland is
creating six month jobs for young people in the voluntary and community sector
– In Greater Manchester: exploring shorter, demand led jobs in VCS and SMEs
FJF Evaluation recommendation: introduce temporary waged job initiatives to stimulate
depressed labour markets and create growth in developing industries
Options for ILMs today – national government
Also, the CBI has recently called for a one-year National Insurance contribution holiday after a business employs a young person
FJF Evaluation recommendation: allow out-of-work benefits to be used as a wage subsidy in low-vacancy areas, in growth and target sectors, for the hardest to support, and in jobs with clear community
benefit
Options for ILMs today – Work Programme providers
In partnership with the ‘Give Us A Chance’ consortium of social housing providers, Inclusion has developed a workable model for subsidising new jobs through the Work Programme...
FJF Evaluation recommendation: work with local partners and employers to fund temporary jobs in
order to achieve sustained employment outcomes for customers
Options for ILMs today – Work Programme providers If young WP customers were offered six-month
temporary jobs, providers would be paid an average of £2,200, over £1,000 more than DWP expects to pay
This additional income could partly fund wage costs, with the difference made up by employers or other investment:
– The ‘Give Us A Chance’ consortium will launch a pilot initiative funded jointly by a Prime provider and the housing association that will employ the young people
– Inclusion recently recommended that national government make up the difference in wage costs, creating up to 75,000 jobs with an investment of £150 million
In summary
Current interventions are not enough Temporary waged jobs work Targeting some young people and certain
places is necessary There are mechanisms and programmes in
place to build on
Contact us Tracy Fishwick
[email protected]@InclusionNW07769 670 753
Laura [email protected]@lauracgardiner020 7840 8343