Youth unemployment: 4 ways to incentivise employers

Human tax credits, a broad apprenticeship levy and local control over skills policy should be introduced, says LSE
16th December 2020, 12:01am
Kate Parker

Share

Youth unemployment: 4 ways to incentivise employers

https://www.tes.com/magazine/archived/youth-unemployment-4-ways-incentivise-employers
Coronavirus: How To Incentivise Businesses To Tackle Youth Unemployment

New incentives need to be introduced to encourage employers to invest in younger workers who have been hit hard by the Covid-19 pandemic, the London School of Economics and Political Science has said. 

This week, the Office of National Statistics revealed that 60 per cent of the total fall in employment in the past quarter was among 16- to 24-year-olds, while redundancies in the three months to October reached a new high of 370,000. 

An LSE report, Trends in job-related training and policies for building future skills into the recovery, published by its Centre for Vocational Education Research (CVER), suggests that human capital tax credits should be introduced to increase the amount that firms invest in upskilling their workforce, and that the apprenticeship levy be redefined more broadly to include stronger incentives for firms to use their funds to train young people. 

Coronavirus: Tackling youth unemployment

The research also suggests that there should be more local control over skills policy, as local knowledge of skills gaps can help to increase the effectiveness of apprenticeships policy - and that there must be more investment in job creation and retraining schemes. 


Ofsted interim visits: 8 new findings you need to know

More: Why we need 'community-led' devolution

Burnham: 'Now is the time to devolve skills policy'

 


Guglielmo Ventura, research assistant at the CVER, said: "Given the context of rising unemployment due to Covid-19, many of those who will need training might not be in employment or work with on-the-job training opportunities. Increased financial support targeted at individuals will therefore be valuable. But there is also a role for support or incentives to improve the quantity and quality of work-related training offered by firms." 

Jiaqi Li, research assistant at the LSE's Centre for Economic Performance, said: "The analysis in our report suggests that the UK was already in need of improved policies and incentives for increased investment in workforce training. Covid-19 has made these needs all the more urgent - particularly for younger workers or those with lower levels of educational attainment." 

You’ve reached your limit of free articles this month

Register for free to read more

You can read two more articles on Tes for free this month if you register using the button below.

Alternatively, you can subscribe for just £1 per month for the next three months and get:

  • Unlimited access to all Tes magazine content
  • Exclusive subscriber-only articles 
  • Email newsletters

Already registered? Log in

You’ve reached your limit of free articles this month

Subscribe to read more

You can subscribe for just £1 per month for the next three months and get:

  • Unlimited access to all Tes magazine content
  • Exclusive subscriber-only articles 
  • Email newsletters