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Youth Contract Wage Incentive: a view from Ingeus Thursday 9 th May 2013 CESI Youth Unemployment Convention Dr Vinny Pattison, Head of Policy and Research ( vpattison@ingeus.co.uk ). Ingeus and the Work Programme since June 2011. 8 UK regions 73 offices
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Youth Contract Wage Incentive: a view from IngeusThursday 9th May 2013CESI Youth Unemployment ConventionDr Vinny Pattison, Head of Policy and Research (vpattison@ingeus.co.uk)
Ingeus and the Work Programme since June 2011 8 UK regions 73 offices 283,266 clients (79,701 18-24 yr olds)
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
Delivery 391,000 • Communication and marketing drive • EST and advisor promotion • Workshops for employers and clients 5,000+
Successes c.1,350 200
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)
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