Following the latest major announcements by the government on funding to support the UK economy and to encourage investment in jobs, jobs, jobs; many are now wondering what does this mean and how does this work in practical terms? ‘Kick Starter Programme’, Traineeships, Apprenticeship funding – Rishi Sunak laid out measures to stimulate businesses and organisations to support efforts in avoiding a youth unemployment crisis that would massively impact the future.
So how bad could it be? A recent report from the IPPR (Institute for Public Policy Research) predicted that 1 million 18-24 year olds risk being unemployed by the end of 2020. The impact of this is a growth in state dependency and a reduction in economic activity, further enhancing the challenges that are faced in the future.
Whilst it is a harsh reality that no measures will be able to protect every job and every business, this committed investment from the government can provide both a short term support to reduce the impact on people, whilst also encouraging companies to invest in their future as the UK economy looks to rebuild.
With the ‘free money’ on offer, the biggest risk is making sure that it is spent in the right areas on the right things. With the thought of £2,000 for any employer who chooses to hire an apprentice aged 16-24 into a new job or £1,500 for any apprentice new hire over the age of 25, it is easy to get caught up in a public funded ‘Gold Rush’.
Getting this right presents a real opportunity for organisations to grow new talent within their team and to start individuals on their new career journey. Get this wrong and it risks being a failed opportunity to invest in future talent for our economy – it also risks causing huge damage to the value and purpose of apprenticeships and traineeships for future candidates.