Budget 2011: Government ‘not doing enough to tackle unemployment’

The government has not done enough to tackle unemployment, according to Lynne Hardman, managing director of professional services at recruitment consultancy Badenoch & Clark.

The government has not done enough to tackle unemployment, according to Lynne Hardman, managing director of professional services at recruitment consultancy Badenoch & Clark.

In yesterday’s Budget, the Chancellor George Osborne announced that 250,000 apprenticeships are to be created over the next four years, while corporation tax is to be cut by 2% to 23%.

Osborne also committed to funding 24 new technical colleges, providing 11-19-year-olds with vocational training with the curriculum now being developed by universities and employers, and funding for further nine new university centres for innovative manufacturing.

Hardman says: “Unemployment is at a 17-year high, yet the chancellor has delivered little within this Budget to address it. The 40,000 additional apprenticeships and 100,000 work experience places announced are a positive move, but we need to guarantee jobs at the end of the schemes. Without a greater focus on employment, I fail to see how this can be a Budget for growth.”

John Salt, director of totaljobs.com, believes therewere a number of positive announcements for the jobs market in the Budget. “The first is the commitment to tackle spiralling youth unemployment. The funding of further 40,000 apprenticeships, 100,000 work experience and the creation of new technical colleges will provide alternatives to university for young people as it gives them the skills needed in today’s market.”

Tim Vye, divisional director of Reed Finance, adds it is important that job creation in the private sector is stimulated if it is expected to provide employment for public sector workers: “Employers need to have confidence in the UK economy and their business’s outlook before signing off on any hiring plans.”

Katie Ivie, HR director at Kelly Services, says: “Kelly Services supports the government’s efforts to boost the labour supply by make it more attractive for people to work longer and delay retirement, and the implementation of 250,000 apprentice places is a positive step, as is the promise of new technical colleges.

“However, the chancellor has failed to fully address the issue of skills development, which is the key enabler for growth in enterprise. We would like to see a greater focus on scientific, practical and technical skills alongside an appropriate number of young people moving through the education system to higher education.”

REC chief executive Kevin Green says: “We are also pleased to see that the government has prioritised youth employment with a new £300m package to help young people into work. Our Youth Employment Taskforce has urged government to take decisive action on the rising number of young people outside of education or employment.”

Katerina Rudiger, CIPD skills adviser, believes the increased funding of work placements for young people is an efficient way to target youth unemployment, “helping to break the vicious circle of no experience/no job and give young people an opportunity to develop and demonstrate the skills and commitment employers need.

“The CIPD is already working with government to facilitate HR professionals playing an active role in making a reality of these ambitions.”

Finally, John Cridland, CBI director-general, says he believes the Budget will help businesses grow and create jobs. “The Chancellor has made clear the UK is open for business. The extra 1p cut in corporation tax will help firms increase investment.

“Meanwhile, significant changes to entrepreneurs’ taxation will rightly focus much-needed support on businesses with growth potential. Reductions in regulations on businesses and the promise of a faster planning system will provide relief to companies trying to take on staff and invest.”

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