New Labor Deal for Young People - Report Example

The New Deal for 18-24 year olds (New labour deal) 10th April 2006 Introduction: The New Deal for 18 to 24 Year Olds is a program that aimsto assist young people who have been unemployed. By this young people will get the skills, training and experience they need to get into work and build their long-term employment prospects. This report will discuss the new deal aim and the help it provides. Moreover, how successful it has been in their venture. This report includes a fair amount of facts and figures to analyze the discussion. Aim of the deal: The Deal was launched in April 1998, as part of the government's effort to implement strategy to reduce unemployment, and tackle the ratio of dependency benefits. It offers help for 18-24 year olds who have been unemployed for about six months. Its ultimate aim is to reduce employment by helping young people to get jobs and assist them in many other possible ways. Everyone on New Deal gets a personal adviser who is his or her point of contact throughout the programme. The personal adviser is appointed to understand you, let you share your experiences, interests and goals. The idea is to get you into a suitable job. Its aim is to meet your needs of finding and keeping a job, or becoming self-employed. New Deal for Young People gives you a chance to take the skills and experience you may have already and polish them to create better opportunities for work. New Deal help people with job search, skills acquisition, work experience, and so on. Effect of New deal: The main aim for the deal was to reduce the unemployment outflow rates, and how far it has succeeded in this aim will remain dependent on the facts and figure to decide. According to the research by (Anderton bob, Riley Rebecca and Young Garry, 1999) The effect was based on the data they calculated and was summarized as followed: 1. While unemployment was lower in the first half of 1998 than it had been in the first half of 1996 for all age and duration categories, it had fallen by more in the pathfinder than the comparison areas. The largest relative decline was for 18-24year olds who had been unemployed for more than 6 months (the target group). But long-term unemployment was also relatively lower for older people in the pathfinder areas. 2. Outflows from unemployment in the pathfinder areas relative to the comparison areas clearly rose for the target group. There is also evidence of a rise in relative outflows of older long term unemployed. 3. Outflow rates from unemployment were generally higher in the first half of 1998 compared to the first half of 1996. The outflow rates of the target group rose substantially in the pathfinder areas. 4. While outflow rates were generally higher in the first half of 1998 than two years earlier, the increase was more marked in the pathfinder areas for virtually all age and duration categories. 5. Inflows to unemployment were generally lower in the first half of 1998 compared to the first half of 1996. This pattern was common to both the pathfinder and comparison areas. Another briefing (Briefing document, May 2004) argues that the New Deal has, overall, been successful. It discuss that however there have been some successes but that was in some part of the country. It mainly focuses on some major groups, more particularly the black ethnic groups has gain less from the new deal than any one else. It states that Britain has the problem of racial inequality in employment. "Black and minority ethnic people are more than twice as likely to be unemployed as white British people. There is a gap of nearly 17 percentage points in employment rates." Says the report. According to (tutor2u) Data on New Deal, participants published in the autumn of 2000 showed that up to the end of July 2000, over 518,000 people had passed through the New Deal scheme, 402,000 have left leaving 116,000 currently on the programme. 237,040 young people had entered employment. Of which 180,600 were in sustained jobs, and 56,440 in jobs lasting less than 13 weeks. 79,000 companies have signed up to the New Deal programme. The effect of new deal depends on the number of participants. According to (" New Deal for 18-24 Year Olds: Survey of Participants Report" , 2001)It may be noted that even if the type of New Deal activity considered, participants on options were much more likely to have found that activity to have been helpful. Second, apart from the Personal Adviser interviews, the main activity that people found helpful was work experience. Third, that the role of the Personal Adviser comes through quite strongly as one of the elements of New Deal that has been most helpful, especially for those who went through an option. Some Statistics about New Deal: Following are the numbers of young people going into the four options: 1. 186,080 young people into continued jobs and 58,370 other jobs up to the end of June. 2. 38,500 have started work in the Voluntary Sector. 3. 36,600 have started work on the Environment Task Force. 4. 81,200 are training on the Full Time Education and Training option. There is a difference in success rate in getting New Deal participants into work through out the regions. Just over one third of participants among 18-24 year olds have moved into employment but in some cities (including Birmingham) the percentage was only 25%. The study shows that some part of the region was still not effective by the new deal. New Deal has improved the job prospects of many thousands of long-term unemployed - many of which were at risk of total detachment from the labour market. These schemes are no doubt quite costly, but the potential economic and social cost from hundreds of thousands of people remaining unemployed was far most costly. Facts and Figures about New deal: According to the data found in National statistics online data on the number of starts is given in table A-2 in appendix A. Further more in the appendix A-3 is presented the data on how many applicants were able to get jobs through the new deal. Report study from (DWP, 2006) states, "Vacancies remain high, with ONS's vacancy survey estimating 593.2 thousand unfilled vacancies in the quarter to February 2006, compared to 596.5 thousand in the previous three months. More than 10,000 new vacancies are placed at Jobcentres every working day and at least as many again come up through other recruitment channels" According to the latest result formulated by (Trade union congress, 2006), between the start of the programme in January 1998 and November 2005 there were 1,026,030 entries to the programme by individual young people. Of these: 702,680 were men, 322,890 women; Excluding don't knows, 68.5% were men, 31.5% women. The twelve months up to and including Nov 05 saw 157,800 young people join the programme. Of these, 110,040 (69.7%) were men. In August 2005 there were 84,590 participants in this programme. Of these: 57,850 (68.4%) were in the Gateway; 14,340 (17.0%) were in an option, of which o 2,610 (18.2%) were in the employment option. (The proportion on this option is continuing to rise, being four percentage points higher than the August figure, which in turn was two points higher than the March figure; this is very welcome.) o 6,350 (44.3%) were in full-time education or training, o 3,330 (23.2%) were in the voluntary sector option, o 2,050 (14.3%) were in the Environmental Task Force, 12,400 (14.7%) were in the follow-through. Between Jan 98 and Aug 05 there were 948,310 individual leavers from the programme. Of these: 424,710 (44.8%) left for employment; 28,130 (29.5%) left for benefits and employment; 215,710 (22.1%) left for benefits - 72,220 (33.5%) for JSA, 29,250 (13.6%) for Income Support, 22,950 (10.6%) for Incapacity Benefit, 70,710 (32.8%) for IS and IB, 20,580 (9.5%) for other benefits, 65,160 (6.9%) for other known destinations, 214,590 (22.6%) for unknown destinations, but off benefits. Conclusion: To summarise, Respondents take a positive view of participation on an option. This makes a large difference to their observation of the usefulness of New Deal. Further consideration needs to be given to the targeting of support within the programme, especially in identifying and meeting the needs of those with the lowest levels of employability at the point of entry. Lastly the perceived level cannot guarantee the success of the new deal and the benefit it gives. Those respondents who are able to find employment with little or no help can reasonably be expected to say that new deal had little or no effect to their job assistance. So, there is certain group of people that we cannot ignore, they are the people who are not able to get them a suitable job through this program and they do not find this at all useful. There are participants who go through an option, perceived the programme to be no more useful than those who left without going on an option. References Bob Anderton, Rebecca Riley and Garry Young (1999), "The New Deal for Young People: Early Findings from the Pathfinder Areas", Page number 22. Briefing document (13th May, 2004), "The New Deal and Race", retrieved from http://www.tuc.org.uk/welfare/tuc-8038-f0.cfm DWP (2006), data retrieved from http://www.dwp.gov.uk/mediacentre/pressreleases/2006/employment/ National statistics, "Number of starts on the New Deal 18 to 24", retrieved from http://www.statistics.gov.uk/cci/nscl.aspID=6141 "New Deal for 18-24 Year Olds: Survey of Participants Report" (October 2001), retrieved from http://72.14.207.104/searchq=cache:y3IoSS19FzoJ:www.delni.gov.uk/docs/word/nd18-24_final_report_01-10-01.doc+New+Deal+for+18-24+year+olds+conclusion&hl=en&gl=pk&ct=clnk&cd=3 Tutor2u, retrieved from, http://www.tutor2u.net/economics/content/topics/unemp/newdeal.htm TUC (7th April 2006), "new deal ,an occasional briefing", retrieved from http://www.tuc.org.uk/welfare/tuc-11730-f0.cfm Appendix A Table A-1 Table A-2 Table A-3 Read More