Public Policy
February 01 2000
by Mike TuffreyIs New Deal working? Alas, the available evidence does not yet allow an authoritative answer. DfEE statistics proudly say 60,000 employers have "signed up" but not how many have actually employed people nor which types of firm have offered subsidised jobs nor what happened to those jobs when the subsidy ran out. Certainly, many large companies report few New Deal hirings, despite initial enthusiasm to get involved. Take BT as an example, one of the UK's largest employers: with 120,000 employees, it recruits more than 7,000 people a year but pledges in its Social Report only 250 New Deal places for the current year.
Perhaps what matters is that unemployment among young people continues to fall whatever the cause. If so, the real challenge lies ahead, now that those able and willing to work are getting jobs. As the New Deal is extended to other groups, the hurdles to overcome get higher - the long term unemployed, those with disabilities, single parents, a hard core of youngsters who dropped out of school years ago, those facing discrimination. Indeed statistics show young people from minority ethnic communities are less likely than their white to counterparts to move on from New Deal schemes into permanent work, despite having better qualifications.
How can individual companies help? Historically, they have adopted a twin track approach, both with direct recruitment and getting involved through the community programme with TECs, enterprise agencies, support for voluntary sector training schemes and the like. As the former becomes harder and harder, large companies need to redouble their efforts on the latter. The coming system of Learning and Skills Councils and the national Small Business Service open opportunities to try new ways - as David Irwin, SBS chief executive, argued in our last edition.
One idea is to mirror the success of mentoring in schools. The Employment Service says the most effective element of the New Deal is the personal adviser, coaching and supporting the individuals. Time to expand employee volunteering schemes, with support and incentives for staff to help address the skills gap?