Youth Unemployment sand the Future Jobs Fund - Work and Pensions Committee Contents


Written evidence submitted by Oxfordshire County Council

EXECUTIVE SUMMARY

I.  Part of the "Backing Young Britain" campaign, Future Jobs Fund programme was designed to create and subsidise new employment opportunities for long term unemployed 18-24 year olds. This report is based on the experience of Oxfordshire County Council in delivering this initiative with our unique design and delivery model involving:

  1. 2 weeks paid pre-employment training for all appointed young people,
  2. follow up workshops monthly during 26 week placement,
  3. one third of all jobs created are within the private sector.

II.  The scheme has enjoyed great success to date, with 79% of those appointed in Phase 1 either having completed or expected to complete the full 26 weeks of employment. In addition, almost 60% of those who have completed the programme have remained in employed beyond 6 months. Positive feedback about the scheme has been received from both the target audience of unemployed 18-24 year old and receiving employers.

III.  Identified areas for improvement include the interface between Job Centre Plus advisers and eligible candidates, as well as relaxation of the community benefit restrictions to ensure more employers in all sectors were able to offer opportunities under such programmes.

IV.  Oxfordshire's relatively high number of young people not in education, employment or training (NEETs), especially in the target age group for FJF (18+) means that it has been disadvantaged by the loss of the FJF. Our candidate data shows we successfully reached individuals with multiple disadvantages through this scheme across our county. We welcome schemes that could replace it and, in particular, schemes within the Work Programme that would enable young people with qualifications at less than level 2 to obtain sufficient skills to undertake further training and work related development opportunities.

BACKGROUND

1.  In 2009, Oxfordshire County Council and Oxfordshire Economic Partnership (OEP) successfully bid to create 120 jobs for 18-24 year olds in the county over 18 months under this programme. Asked to accelerate delivery, the first half (60 jobs) were created and filled between November 2009 and May 2010. Phase 2 of the programme, delivery of the second 60 job starts, continues with 29 further starts and will run until March 2011.

2.  Of the jobs in Phase 1, a wide variety of roles were created, approximately one third with private sector employers, one third with voluntary sector and one third with public sector organisations including NHS and local colleges as well as councils.

3.  A unique feature of the Oxfordshire scheme is the two week pre-employment programme given to all FJF employees which covers a number of key skills and reinforces successful behaviour at work, Annex 1. It has been a challenge to take each cohort of anything from six to 18 young people through this programme; with academic ability ranging from some who dropped out of school aged 14 to recent graduates but all have found it valuable. See Annex 4 for a sample of employees' views of the ending of this programme.

SUCCESS RATES

4.  Over half of the jobs created through this initiative had the potential to last more than the minimum of 6 months should the young person get on well with the position. Outcomes to date show that 54.5% of those who have completed the full six month placements to date remain in employment. 79% of the young people recruited in Phase 1 have either completed or are expected to complete the full 26 week placement.

5.  Of the young people who participated in Phase 1 of the programme, filling the first 60 jobs, 13.24% were Black & Minority Ethnic (BAME), 10.3% had some disability, 54% were male and 46% female. Three of the young people were parents and one was a recent care leaver.

6.  A sample of case studies is included as Annex 2 with comments such as "I've landed two jobs thanks to FJF in my desired line of work that would have been near impossible to get without it" and "For me, the Future Jobs Fund has proved a very good initiative. I lost my confidence after my spell of unemployment and this placement has given me the focus and opportunity to regain it", "The Future Jobs Fund I think is a very good scheme for young adults looking for a way into the working industry. It basically gives you a foot in the door into work. Before I was on this scheme I found it hard to get work, wasn't as confident or happy and had a lazy approach to doing anything. Now I am working I am bubbly and having a great time with new work mates."

STRENGTHS AND WEAKNESS

Lead Awarding Body (Oxfordshire County Council) perspective

STRENGTHS

7.  One of the strengths of the Future Jobs Fund programme from the lead awarding body perspective is that it was designed to be tailored to the particular needs of a county or region rather than all elements designed nationally. Oxfordshire traditionally has very low levels of unemployment and the number of young people who would meet the criteria were therefore in the hundreds not thousands and had particular barriers or additional needs. This enabled us to build into our bid and subsequently very successful programme, the two weeks pre employment course which developed confidence, work readiness and provided on going support to the young people, see programme outlined in Annex 1.

8.  Employers selected their FJF employee from candidates referred by Job Centre Plus (JCP) and employed them directly so all terms and conditions of their contract were the same as their co-workers. The salary subsidy, passed directly to employers, covered full cost of minimum wage x 25 hours x 26 weeks for candidates under 21 and cost the employer only £12 per week for employees 21+. That fact made this a relatively easy sell to employers, although there was considerable effort expended to get things off the ground which should not be under-estimated. The business benefit of being able to try inexperienced or untrained young people at no real risk made it very attractive to employers and this approach has paid real dividends for both employees and organisations involved.

9.  Working with regional Job Centre Plus (JCP) contacts and business leaders to identify how to evidence the community benefit of private sector employer job offers was crucial to delivering the range and number of positions we had committed to achieving. Initially it had been anticipated that all new roles would be generated by public and voluntary sector but the inflexibility and bureaucracy associated with many of these potential employers required a re-think to achieve our goals. Promotion of the offer through Oxfordshire Economic Partnership, letters to key partners from the Leader of the Council, Keith Mitchell and closer links to Connexions Service and apprenticeship initiatives made this possible.

10.  By having a third of the FJF opportunities within the private sector or linked to longer term apprenticeships, we have been able to extend the paid employment for many of the young people who have come through the programme.

WEAKNESS

11.  Candidates were referred for interview by Job Centre Plus and there were many examples of lack of preparedness of candidates who alleged they had received very limited advice or guidance from Job Centre Plus (JCP) about application and interview process as well as the precise nature of the roles for which they were applying. Local JCP contacts did confirm that, although job descriptions or role outlines were provided by the Future Jobs Fund programme team for every vacancy, these were not always passed on to candidates which meant they arrived at interview with little preparation or confidence.

12.  Those candidates who were successful at interview often secured the role despite, not because of, their application form. Many applications had little or no detail about the candidate's suitability for the position which was perhaps unsurprising when many were unclear about the job for which they were applying. However, with so many having completed earlier interventions such as A4E 2 week and 13 week programmes, it is surprising to realise they remained so far away from work-readiness.

13.  For some of the opportunities advertised through the scheme it was not possible to fill the vacancy because JCP advisers were unable to identify any potential candidates, i.e. care work or put forward individuals who were completely uninterested in the job perhaps an admin role for someone seeking warehouse work, meaning there were high levels of non attendance for some interviews.

14.  We did lose some employment opportunities with private sector employers due to the strictness of the rules and guidance around community benefit because it had to be much more than simply taking on an unemployed person and many employers struggled with the logic and ideology behind this.

EMPLOYERS' PERSPECTIVE

15.  Brief interviews with the six employers who accounted for a third of the FJF jobs filled in Phase 1 confirmed their positive experience of the programme in a short survey. To the question "How would you rate the FJF experience from an employers point of view" we received the following comments, "Useful, positive"; "excellent"; "refreshingly straight forward, easy"; "Good communication with us"; "Scheme good, candidates limited"; "Good".

16.  A snapshot view of the employers' experiences in engaging with these unemployed young people includes the following comments about what they found to be most surprising part: "Range of backgrounds, wasted potential" and "Enthusiasm from candidates". There was considerable disappointment that the programme is not continuing, see Annex 3 for full results.

EMPLOYEES' PERSPECTIVE

17.  Our short survey of 32 of the Phase 1 FJF employees found that 16% have never worked before so would previously have been considered NEET (not in education, employment or training). In addition, 25% were living independently or with a partner while participating in this programme meaning they would have been receiving other out of work benefits in addition to Job Seekers Allowance.

18.  Many of the young people travelled quite a long way for their jobs through this programme with 21.87% travelling 40 minutes each way and 12.5% travelling for an hour or more. This indicates high levels of motivation from this group as many of the roles paid only minimum wage.

19.  50% of respondents felt that lack of experience was their main barrier to employment but, interestingly, none felt they were hampered by lack of qualifications. Only 16%, five individuals, felt the lack of any financial incentive was deterring them from securing employment but three felt constrained by lack of confidence and one person had caring responsibilities. However, the greatest barrier to employment for this group they felt to be poor support from the job centre (59.37%) which is disappointing.

20.  When asked what they thought of the decision to end the programme there was universal dismay and comments such as: "I think they should keep it going as it is a superb scheme. A brilliant idea and it's been so helpful for people who may not be able to get a job any other way" and "It's a good plan and a shame that it's being disbanded but I understand why, as it's not really doing much or making any money. I think it was a little cheeky of the old government to use it as a way to boost employment rates". For all comments see Annex 4.

CONCLUSION/RECOMMENDATIONS

21.  Oxfordshire's relatively high number of young people not in education, employment or training (NEETs), especially in the target age group for FJF (18+) means that it has been disadvantaged by the loss of the FJF. However we welcome schemes that could replace it and, in particular, schemes within the Work Programme that would enable young people with qualifications at less than level 2 to obtain sufficient skills to undertake further training, e.g. apprenticeships.

22.  We are fully supportive of any measures that help to move young people off Job Seekers' Allowance and on to job based training and apprenticeship schemes.

23.  We are very keen to see more incentives for employers to provide apprenticeships and development opportunities for disadvantaged groups but, in particular:

  1. To young people aged over 19 (because at present there is no funding for employers so a young person over 19 is at a disadvantage against a young person aged 16 to 18 when applying for an apprenticeship) at level 2.
  2. For the Learning Difficulties and Disabilities (LDD) cohort up to the age of 25 there are additional barriers. At present there are no incentives for employers to take on young people with LDD so, again, these young people are disadvantaged. Funding and support for social enterprises and public interest not-for-profit companies could be a way forward in this instance, as could taking advantage of Corporate Social Responsibility programmes (Tesco is cited as a good example of this) to encourage employment of young people with disabilities.
  3. For young people who have had problems in school such as ill health, truancy or exclusion - employers and training providers are rewarded by success and attendance so they are often reluctant to take on a young person who has a history of poor attendance at school - this means that a young person is effectively written off at 16 and may be denied a second chance, even if the attendance problem in the past was not their fault or if their circumstances have changed.
  4. Introduction of pre-apprenticeship courses, to prepare young people for the environment of work and learning, for example in terms of workplace and "soft" skills. For maximum benefit these need to be directly linked to work opportunities and not take place before there is the offer of a placement because young people quickly become disaffected if they are unable to see the benefit of their effort.

24.  An expansion of the salary supplement model of Future Jobs Fund programme to enable the offer to be accessed by other disadvantaged groups such as people with disabilities, lone parents, carers returning to the workforce to name a few, could provide the real benefits of this scheme to a wider audience as part of the broader welfare to work programme.

25.  A clearer link between work-related skills development and employment prospects will help more unemployed people to re-enter the workforce. Although many of these FJF employees had attended via Job Centre Plus, the local employment directed interventions lasting for two or 13 weeks, they had still failed to develop the necessary understanding of application and recruitment processes or how best to secure employment. They all benefitted from our pre employment programme, covering customer service, health & safety, dignity at work and dealing with difficult situations training, and ongoing workshops, which have been a key part of our success resulting in a 79% completion rate for young people on this programme in Oxfordshire, and 59.5% in employment beyond 26 weeks.

9 September 2010



 
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