Move to recruit 100 apprentices as youth unemployment soars

Members of the local authority’s ruling cabinet are to be asked to approve the spending tomorrow and will be told the number of young people claiming unemployment benefits in the city has rocketed.

According to statistics compiled by economic and development officers, there are around 5,000 people under the age of 24 who are out of work and claiming Job Seekers’ Allowance (JSA) in the city.

This equates to a six per cent claimant rate among young people, which described as “significantly higher” than the rate among older people which is 4.4 per cent across the working age population.

Officers will tell tomorrow’s meeting: “Increasing youth employment is a critical challenge for the city which will have long lasting impacts if not addressed.

“This proposal is designed to make a sustainable difference to 100 young people who may not otherwise have the opportunity to pursue further training or employment in the current economic climate.”

According to the Sheffield figures, alongside the JSA claimants there are also a further 1,200 people aged 16 to 18 who are not in education, employment or training who are known as NEETS.

The number of young people in this bracket have also increased since the recession, officers will say, after the figure fell for five consecutive years between 2005 and 2010.

In a report to the cabinet, Edward Highfield, the council’s director of economy, enterprise and skills, impresses on leading councillors the need to tackle the problem quickly to avoid long-term problems.

He says: “The impact of the recession has been felt keenly by young people, with around 30 per cent of new JSA claimants, and additional 2,400 people aged under 24.

“The number of employment opportunities reduced during the recession and a slow economic recovery means that the labour market remains tight.

“In these circumstances young people with no work experience may find it difficult to secure employment as there is increased competition for jobs from people with recent work experience.

“However, without gaining work, young people are further exposed to de-skilling and periods of inactivity, reducing their employment prospects further.

“This can lead to young people becoming ‘trapped’ without job opportunities and lead to long periods of unemployment. This is borne out by the data with more young people remaining on JSA for longer.

“Before the recession, approximately 16 per cent would claim for longer than six months while post-recession this is significantly higher at 27.5 per cent.”

Cash to run the apprenticeship scheme will come from the Local Authority Business Growth incentive Fund held by the council which must be used to promote enterprise initiatives.

If the scheme is approved, officers will look to approach companies which may wish to recruit apprentices and offer them the chance to take part, although firms would be expected to provide “match funding” to cover 50 per cent of the wage costs of the apprentice.

Mr Highfield adds that the authority may take on several of the apprentices itself and will remain in contact with each of the 100 apprentices throughout the programme and afterwards to ensure they are supported.

The scheme will run for two years, although it is predicted that most of the apprenticeships will last for around 18 months and it is hoped that each apprentice will end the scheme with at least a vocational qualification and experience while some will be offered permanent jobs.