Small businesses demand more help from Jobcentres

Sep 16 2009 by Iain Laing, The Journal

BUSINESS leaders have called for jobcentres to be "urgently reformed" to tackle rising unemployment.

The Federation of Small Businesses (FSB) said research showed one in three smaller firms found the Jobcentre Plus network “ineffective“. Around half the 2,500 FSB members surveyed did not even know if jobcentres worked well or not.

With unemployment set to rise to three million by the end of the year, and the number of under-25s on jobseeker’s allowance having risen by 80% in the past year, it was clear urgent action was needed, said the federation.

Fewer than one in five small businesses said they used Jobcentre Plus to hire staff, relying instead on costly advertising and recruitment services.

The FSB called for a dedicated small business manager to be appointed in each Jobcentre, research to examine how funding allocated to unemployment, training and business support initiatives was spent and an overhaul of the Jobcentre Plus website.

FSB chairman John Wright said: “FSB members feel let down by a service which appears to offer them precious little for the £3.36bn Jobcentre Plus spends each year.

“As small businesses are the country’s key employers, and are known to give a larger proportion of jobs to those who have previously been unemployed than big businesses, it’s time the Government reformed Jobcentre Plus and made it work effectively.

“The FSB is concerned the lion’s share of funding from Jobcentre Plus currently goes to large companies and multinationals, which would still provide training if public funding were not available.

“Small businesses are big employers, and with 57% without employees keen to employ people in the future, they must be given all the support they need to create jobs.”

Shadow business minister Mark Prisk said: “Small businesses are vital to the jobs market. It is clear from this report that ministers have failed to make Jobcentre Plus work for small firms.

“Ministers need to listen to small businesses and reform the system if vacancies are to be filled and the economy is to revive.”

Employment minister Jim Knight said: “Jobcentre Plus work very closely with employers, including over 380,000 from small businesses.

“Thanks in part to our work with the FSB we have expanded the number of internships and mentors available to young people.

“As the economy moves into recovery we will continue to work with the small business sector so that when they are ready to take on new staff they benefit with the savings of working with Jobcentre Plus.”