Why we need a more ambitious plan for employment support
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The latest employment figures indicated that vacancies are now at an all time high, and headlines as we enter the autumn have been dominated by workers of shortages.
The Chancellor used his speech at Conservative Party Conference to announce the extension of employment support programmes introduced through the pandemic to next year.
At the Work Foundation, we have been highlighting the need for targeted provision for individuals without a job as the furlough scheme comes to an end, so the Chancellor’s decision to prioritise individuals in these circumstances through the enhanced Job Finding Service is welcome.
These include specialist provision for young people who are out of work and on Universal Credit, including the Kickstart work placement scheme, specialist career coaching and support located within services for young people through the Youth Offer, and additional employer incentives to take on apprenticeships. Young people have been among the worst affected by the Covid crisis; they were over-represented among the sectors shut down during the pandemic, and were more likely to be out of work or on furlough as a result.
The Chancellor also committed to extend the Job Entry Targeted Support Scheme, a light touch employment support service for people of all ages on Universal Credit who are recently out of work. While it’s positive to see these schemes continue in to next year, it isn’t yet clear if these steps will be sufficient to stem an increase in unemployment as the furlough scheme comes to an end.
These are small scale programmes, and don’t appear to be struggling to reach the numbers of jobseekers they planned to support. 13,000 people had moved in to work as a result of the JETS scheme by May this year, although it isn’t yet clear if the scheme’s original target of supporting 250,000 people by September this year has now been met. The Kickstart Scheme was launched also launched with a target of supporting a quarter of a million people in to placements, but so far only 76,900 young people have moved in to a Kickstart placement.
But there is a more fundamental challenge in investing in employment support services to mitigate the impacts of the crisis on the economy and individuals on low incomes. Each of these programmes is narrowly targeted towards people who are receiving Universal Credit. Many individuals may not know that they’re eligible for benefits, or may be hesitant to make a claim as a result of the stigma attached to social security. Research from the Welfare at a Social Distance Project estimates half a million individuals who would have been eligible for UC at the onset of the pandemic didn’t make a claim.
The Chancellor’s announcements indicate welcome recognition of the need for more intensive employment support as we navigate the months ahead. But the Spending Review this month will present an opportunity for a more radical rethink of the role of the state in supporting individuals to navigate the labour market at times of significant disruption.
It is time to break the link between welfare benefits and access to employment support. Many individuals would benefit from tailored support and guidance to access a work or training opportunities that reflect their ambitions, skills and personal circumstances. This personalised support can be particularly valuable for individuals who might face barriers to finding and staying work, and are under-represented in our labour market, including disabled people, carers and parents. This autumn, the Chancellor should look beyond short term extensions to pandemic response measures, and develop a more comprehensive and ambitious approach to employment support that will form a core part of our social infrastructure for years to come.
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