The coronavirus pandemic has caused an economic crisis that is hitting young people hard. Data from May to July showed that youth unemployment had climbed to 13.4 per cent, compared with 4.1 per cent for the whole population.
In total around 1.9 million young people under 24 have been furloughed at some point. While many of these young people have returned to work, it’s very likely many more will lose their jobs when the furlough scheme ends later this month.
It’s for these reasons that Kickstart is an urgently needed and welcome initiative. Launched by the chancellor, Rishi Sunak, in September, the £2 billion Kickstart scheme will fund jobs for six months for young people, aged between 16 to 24, who are claiming Universal Credit and at risk of long-term unemployment. With no cap on the number of jobs that can be created through the scheme, government pays all wage costs up to 25 hours each week at the relevant minimum wage. It also provides £1,500 funding for training and support for each young person. Kickstart really has the potential to make a difference to the lives of hundreds of thousands of young people.
Early support from businesses for Kickstart has been good. Thousands have signed up directly, or through gateway organisations, to offer subsidised jobs. While there really is much to celebrate about the scheme, and rapid implementation is needed to avoid the scarring effect of long-term youth unemployment, the devil is in detail of the delivery.
The Department for Work and Pensions needs to perform a careful balancing act in ensuring that the scheme is both flexible and accessible, and putting measures in place to ensure that the right young people benefit from high-quality jobs that lead to sustainable employment.
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One of the first big question marks is around eligibility and targeting. While it’s right that work coaches have discretion to refer young people, there’s a risk that job-ready young people who could gain an unsubsidised job or apprenticeship may be referred.
This could result in the more disadvantaged young people, who are further from the labour market, missing out and also result in deadweight – government effectively subsidising jobs for young people who would have got them anyway. In addition, there are hundreds of thousands of young people who are out of education and work who are not claiming benefits. This includes the majority of 16- and 17-years-olds, who are not eligible for Universal Credit.
These young people typically receive very little support and, under current guidelines, are not eligible for Kickstart. Ineffective targeting therefore means the scheme is likely to deliver less value for money than it could, alongside less impact for young people who really need it.
To ensure that young people who can really benefit from subsidised jobs and support get access to Kickstart, work coaches should be given clear guidance about which young people to refer, and local authorities should be able to refer young people who are not claiming benefits.
The quality of Kickstart jobs
The quality of jobs and support is also essential. We all know that a good job, with training and support, is transformative. It boosts confidence, gives young people self-belief and ambition, and unleashes their talents. Employers should be given clear criteria about the quality of the Kickstart jobs they offer and guidance about how to meet them. A clear and welcoming induction process, an identified line manager, a learning and development plan, and mentoring and job search support are some of the basic measures that will ensure that Kickstart jobs deliver the quality experience that young people need to begin building sustainable careers.
Securing a positive outcome
Finally, there needs to be a strong focus on securing a positive outcome – an unsubsidised job – from day one. This is the aim of the programme, and the line of sight needs to be clear. Young people need wrap-around support that is tailored to their needs. All young people are different, with different barriers to employment and different ambitions for the future.
Both work coaches and employers have a crucial role to play in providing support and enabling each young person to focus on their employment goal and make regular steps of progress towards it. This support should include a personal career action plan, regular review and feedback meetings, training and development opportunities, and job search support. To incentivise employers to keep young people on after completing their placement, there should also be a £1,000 Kickstart bonus for businesses that offer an apprenticeship or unsubsidised job to a young person.
At a time when the news is dominated by business closures and job cuts, Kickstart has the potential to be an exciting and ambitious scheme that launches the careers of hundreds of thousands of young people. While the future youth labour market will undoubtedly be very different to what we are used to, if Kickstart can give young people the opportunities and skills to adapt and thrive, business and the economy will benefit from the unique talent, energy and creativity that young people bring.
Nicola Aylward is the head of learning for young people at the Learning and Work Institute
