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


Written evidence submitted by Manchester City Council

Manchester City Council is a partner in the Greater Manchester FJF Programme which aims to create and fill 8,000 jobs between September 2009 and March 2011. In Manchester, we are committed to creating and filling 1,500 of those posts and to date we have created and filled 916. Our response to this consultation is based on our experience of delivering FJF placements and our wider experience of developing approaches to entrenched worklessness in some of our neighbourhoods.

THE EXTENT TO WHICH THE FJF HAS SUCCEEDED IN MATCHING NEW WORK EXPERIENCE OPPORTUNITIES TO YOUNG UNEMPLOYED PEOPLE

FJF in Manchester has proved very successful in matching employment opportunities to young unemployed people, targeting some of the most difficult to help in our community, and for whom working is not the norm. We have achieved this by:

  • Mobilising key partners to provide FJF placements & progression opportunities for young people.
  • Pioneering new recruitment methods avoiding the traditional CV & application form process. The focus is on the young person's potential rather than academic achievements or previous experience and is particularly important when placing vulnerable groups e.g. young offenders.
  • Providing an enhanced induction and direct personal support to young people during their first few weeks of work to deal with any barriers they might have to sustaining employment e.g. conflict between work hours and caring responsibilities.
  • Identifying a number of employment opportunities for young people who come through the FJF route e.g. ring-fencing MCC entry level positions for young people completing their six months on FJF and recommending particular young people whom we have "talent spotted" through the process to other employers.
  • Making young people aware of all of their progression routes (further education, apprenticeships, ring-fenced vacancies and volunteering) with a single point of contact for each, as they come to the end of their placement.

STRENGTHS AND WEAKNESSES OF THE FJF PROGRAMME FROM THE PERSPECTIVE OF PROVIDERS, EMPLOYERS AND YOUNG UNEMPLOYED PEOPLE AND PARTICULARLY IN RELATION TO THE LONG-TERM SUSTAINABILITY OF EMPLOYMENT OPPORTUNITIES.

Strengths

The key strength of the Future Jobs Fund is that the programme design and delivery was devolved to a local level and by developing it at a Greater Manchester level we were able to link it with a natural economic boundary and travel to work patterns in the conurbation. This enabled us to design a flexible programme which we could enhance and vary to meet the needs of individuals as we learned lessons from its delivery. Crucially we were able to wrap other public services around the needs of the individual and family to improve their prospects for success. Equally we were able to work with local partners e.g. Manchester College to ensure that young people leaving FJF could secure an appropriate learning opportunity when their placement was completed rather than waiting for the start of a new course /term.

Secondly we have recognised that FJF opportunities can act as a "proxy intermediate labour market" where young people can make the transition to work in a relatively safe but real work environment. We have provided an enhanced induction and personalised support to deal with any particular barriers that a young person might face in their early weeks at work. Overall, the training and personal development programme for FJF candidates looks to build generic, transferable skills that a young person can take into the wider labour market and the experience they gain on a FJF placement should make them more competitive in the labour market and better able to sustain employment in the long-term.

The scale of the FJF programme and the long-established partnerships that we have in the City around the work and skills agenda, meant that we were able to offer a diverse range of real jobs and target to communities that have felt in the past that work is not an option. Once young people have engaged in the programme we have been able to identify with and deal with other barriers to employment e.g. poor literacy and numeracy levels. The AGMA model of 35 hours paid employment as opposed to the national standard of 25 hours per week, which equates to £54 additional income per person, has made the jobs more attractive and means there is more money circulating in our most deprived neighbourhoods.

Over and above the benefits to the individuals involved there have been long-term benefits to our local communities. One example is the Zion Arts Centre, which is a community based creative and media organisation that works with young people in Manchester. They provided a number of FJF opportunities and supported the FJF young people to establish a youth theatre that will provide a legacy beyond the FJF programme. One of the FJF candidates progressed on to a creative apprenticeship with the Zion upon completion of their FJF placement. There are many other examples across the City with two of the City's cemeteries recently achieving Green Flag status thanks to the hard work and dedication of FJF employees.

Weaknesses

The most significant weakness with the current FJF programme is that private sector employers have not been able to take on Future Jobs Fund candidates. The private sector represents the best opportunity for progression routes to permanent employment and is even more critical in an environment of spending cuts and a reduction of jobs in the public sector. Our approach to "talent spotting" as part of the FJF programme and other initiatives that we have developed with partner organisations and large employers, such as Aspire an employment agency that recruits workless residents into temporary employment, have demonstrated that temporary employment with the right support is a sustainable route to permanent employment. These are they type of local approaches that we would wish to see incorporated into the Work Programme.

 As FJF was a volume programme that was designed and delivered within a short timescale, the "carrot" and "stick" aspects of the programme were not as balanced as they could have been. There can often be a time delay between a young person disengaging from the programme and benefit sanctions. Our experience suggests that a short, sharp shock in terms of sanctions would have a more immediate effect on the behaviour /engagement of the young people involved.

Tracking of young people and sharing of personal data between agencies has, as with other programmes, been a barrier. This results in incomplete data about the destination of young people and a significant investment of time by the delivering agent in trying to track young people who have left the programme. Tracking and data sharing issues are particularly pertinent to this programme as young people can often be transient.

There have been issues with progression routes because of eligibility requirements of other programmes e.g. SFA funded programmes where you have to have been unemployed for six months or more to be eligible. Because of our partnership working arrangements and our ability to be flexible locally we have found local solutions to some of these problems but it has been time consuming.

Retention - our experience has shown that people moving into work for the first time, or after a long time out of work, require much more intensive support, both before starting work and whilst in work, than had been previously assumed. Whilst Manchester's drop-out rate on FJF has been low (less than 5%), there is a spike at seven weeks. Reasons given include the new lifestyle proving too difficult or stressful, or people's hitherto good experience in their new job marred by a small disciplinary issue, or externalities such as caring responsibilities. A lack of local knowledge and or wider family / community experience of how to cope with such difficulties can lead to dropping out of employment. We have found that enhanced induction at the start of the process has to be followed up with help to develop emotional and practical resilience, as well as technical and educational job and skills based support

THE LIKELY IMPACT OF THE DECISION TO END FJF IN MARCH 2011 RATHER THAN MARCH 2012

The most immediate impact is likely to be an increase in youth unemployment or in a best case scenario a reduction in the recent decreases in youth unemployment, which we have seen since the introduction of FJF. In a City like Manchester where we have over 64,000 people of working age out of work, concentrated in our poorest communities, the impact of ending FJF earlier will be felt disproportionately in those communities.

Continuing the FJF programme to March 2012 would mean that there would be an overlap with the introduction and embedding of the Work Programme provision. This would provide the potential for the FJF programme or parts of it to become part of the Work Programme supply chain. It would also enable us to further develop our pathways from FJF into employment opportunities with the private sector which again could be built on by Work Programme contractors. The decision to end FJF in March 2011 means that there will be a significant gap between the ending of this programme and commencement of the Work Programme.

The FJF programme adds value locally where projects are developed that are used / enjoyed by the local community e.g. the restoration of the Victorian Kitchen Garden in Wythenshawe Park. These tend to be visible and contribute to pride of place. One of the progression routes for FJF employees is structured volunteering. It is as yet too early to determine whether the experience of our young people on FJF means that they are more likely to volunteer /be actively engaged in their local communities.

HOW THE TRANSITION FROM FJF TO THE WORK PROGRAMME WILL BE MANAGED, INCLUDING THE PART TO BE PLAYED BY THE GOVERNMENT'S PROPOSAL TO FUND NEW APPRENTICESHIPS.

Manchester has a fairly unique set of economic opportunities, alongside some of the poorest neighbourhoods in the country. As a City Council, we want to maximize long-term sustainable economic growth and ensure that our residents are best able to benefit from that growth by ensuring that they have the skills to actively participate in our economy. At its heart, this policy will address, and break, the cycle of long-term benefit dependency experienced by many of our residents, and help them play a more productive role as active citizens. But to be effective, welfare reform and the Work Programme must be developed in an integrated way with local services and opportunities so that the right support is in place to address the range of barriers that people face along the pathway to employment.

Stronger recognition needs to be given to the role Local Authorities and partners at a local level can play in the development and delivery of the Work Programme. Our models for intervention as demonstrated with our experience of the FJF show that the best results are delivered when employment and skills support is delivered to individuals with other services wrapped around to meet individual and community need. This approach takes a holistic approach across all public services to enable and support people into work and off benefit dependency.

We support the Government's commitment to localism and ask therefore that local flexibility is built into the delivery of the Work Programme. We need to ensure that the prime contractors for the Work Programme work in an integrated way with other local partners and service providers, thus giving the best chance of creating sustainable work opportunities for the residents of Manchester. We should not though overlook that in a significant minority of cases, a "flagship" programme - focussed on pre-employment support and with some of the principles of FJF embedded within it can play an invaluable part in galvanising the commitment of employers. Demonstrating real success enabling those "hardest to help" back into work can have a catalytic effect in our communities.

8 October 2010



 
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