Region greets Brown's moves to get the jobless working
Jan 13 2009 By Andrew Mernin
NEW Government measures to help the unemployed back into work were last night welcomed by North East industry figures.
But they also called for a renewed focus on tackling the causes of the economic downturn.
The two-year, £500m scheme will be targeted at the 500,000 people who have been on the job market for six months or more.
They include £2,500 “golden hellos” for employers to recruit and train the unemployed, more training places and business start-up funding.
But regional figures last night renewed calls for the Government to refocus its efforts on easing the credit markets.
Liz Mayes, CBI assistant regional director, said: “These measures to help the unemployed are welcome and important, but we also need initiatives that will stop people being made unemployed in the first place.
“We believe that the best way to protect jobs and the economy is to target the credit crunch. If we do not get credit flowing through the economy again, good businesses will fail, causing more job losses and lasting damage to the economy.”
Tony Sarginson, regional manager for the manufacturing body EEF, said: “These are laudable proposals which will benefit those companies looking to recruit.
“However, at a time when we are facing a wave of job losses, proposals focused on helping people back into work are missing the mark.
“The main priority for manufacturers right now is to keep the skilled workforce that they already have and maintain cashflow. Above all else, Government policy must focus on easing the flow of credit and restoring financial liquidity.”
Nationally the unemployment rate is 1.8m with the jobless rate in the North East the highest in the UK at 8.2% of the working age population – 104,000 people.
Colin Stratton, regional chairman for the Federation of Small Business, said: “We feel that Mr Brown once again has fallen short in his action to tackle the unemployment issues.
“While certain elements of the announcement are encouraging, the fact the there is to be a six-month wait for the unemployed to get help is simply too long and drawn out.
“We are calling for the Government to help small businesses to continue to invest in recruitment and training so they can grow stronger and more competitive, creating quality jobs and doing their bit to pull the UK out of the economic slowdown as quickly as possible.
As well as extra funds for Jobcentre Plus to provide every jobseeker who has been out of work for six months with more intensive and personalised support, the package will include giving individuals access to:
Employers’ golden hellos: incentives of up to £2,500 paid to employers to recruit and train unemployed people
New training places: extra funding for training places to help unemployed people get new skills to maximise their chances of getting jobs from the 500,000 vacancies in the economy
Work-focused volunteering options: opportunities to volunteer to help people back into work habits
Help to set up a business – advice on creating a business plan, plus funding for the first months of trading.
