Youth Contract Wage Incentive: a view from Ingeus

Thursday 9th May 2013

CESI Youth Unemployment Convention

Dr Vinny Pattison, Head of Policy and Research (vpattison@ingeus.co.uk)

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