Youth contract figures are not cause for celebration, warns TUC

date: 22 July 2013

embargo: For immediate release

Commenting on today's (Monday) Youth Contract statistics, published by the Department for Work and Pensions, TUC General Secretary Frances O'Grady said:

'It is far too early for the government to be hailing the Youth Contract a success.

'Closer reading of today's figures show that of the 7,810 people who started on this scheme 26 weeks or more ago, only 2,870 found long-term jobs. In other words, 63 per cent of those who started left employment before six months.

'There is also still a huge issue with employer take-up. Research published last month shows that nearly one in three (31 per cent) firms are still not aware of this initiative, and of those that are, fewer than one in five (18 per cent) intend to make use of it.'

NOTES TO EDITORS:

- According to Youth Contract Wage Incentive Payments - Experimental Statisticsthere are 7,810 people who started on this scheme 26 weeks or more ago, and could therefore have qualified their employer for either a full or a balance payment. In fact, there have been 2,870 such payments. In other words, 63 per cent of the people who started have left employment before 26 weeks.

- A survey of businesses carried out by the Recruitment and Employment Confederation last month revealed that nearly one in three (31 per cent) firms are still not aware of the Youth Contract and just 18% of firms that are aware of the contract do intend to make use of it - down from 22 per cent last year.

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