By Maximilian Clarke
Leading business lobbying group, the Confederation of British Industry (CBI), has unveiled a new tax incentive intended to get more young people into work.
Outlined in their latest report, Action for Jobs, how to get the UK working, the tax incentive would offer businesses up to £1500 for hiring unemployed youth (16-24 year olds). Costing an estimated £150 million a year, the move would be ‘affordable’, whilst helping to stem the worsening loss of talent resulting from long term joblessness.
Other proposals outlined by the organisation include: creating around 450 business ambassadors, one for each local area, to strengthen links between schools and businesses using successful schemes that build long-term partnerships; introducing a comprehensive "readiness for work" assessment for every unemployed person; and suspending, rather than completely cancelling benefits when someone initially takes a job to reduce the perceived risk of taking a short-term post.
"With unemployment rising, particularly among young people, now is the time for action for jobs,” said CBI Director-General, John Cridland.
"The best way of getting the UK working is to get the private sector motoring, but the labour market has been wracked by structural problems long before the recession struck that won't be swept away by a return to growth.
"The good news is that even in these challenging times businesses are creating jobs, but all too often the unemployed, particularly our young people, are not best placed to get them. We need businesses, schools and the Government working together to make sure young people are able to shine in the jobs market.
"Our proposals are not exhaustive, but taken together would herald a major shift in the way we prepare youngsters for the world of work, provide support for companies to create and retain jobs, and ensure the benefits system makes work pay."
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