A £1bn government subsidised work scheme due to begin in April aimed at tackling rising youth unemployment of more than 1m has been broadly welcomed by recruiters.

However, how the programme is implemented will make the diference between whether it succeeds or fails, they warn.

The main features of the youth contract scheme announced today by Deputy Prime Minister Nick Clegg are;

· employers will receive subsidies worth £2,275 to take on 160,000 18-to-24-year olds for six months over three years.

· up to 400,000 work and training placements will be created, giving employers wage incentives worth half the National Minimum Wage for young people, currently between £3.68 and £6.08 depending on age

· another 250,000 young people will be offered work experience placement lasting up to eight weeks

· a £50m programme aimed at helping 25,000 NEETs (not in employment, education or training)

Clegg said: “We can’t afford to leave our young men and women on the scrapheap. we need the next generation to help us build a new economy.”

Charles Logan, director at Hays, comments: “We need to make sure that these incentives are aligned to the job areas where there is a shortage of talented people so they generate the right skills to fuel the UK economy.”

David Morel, founder of the UK employment agency Tiger Recruitment, says: “Government-imposed schemes will get a proportion of people back into work, and that’s great news, but the depth of the current economic crisis means they are mere tinkering around the edges.

“Only when the economy is growing can sustainable jobs be created. And with the economy showing such anaemic and weak progress, the scheme’s long-term prospects are limited.”

Matthew Ogston, founder of JobPage.com, says the scheme has the potential to make “a real difference”. However, he warns: “If it is imposed in a top-down manner and only through government-run Jobcentres, it may be doomed to fail.

“A great number of the most dynamic and motivated young jobseekers never go to Jobcentres, and rely on the internet, social media and employment agencies to find work.

“These are the sort of proactive young people who have most to offer employers, and who stand to gain most from the youth contract scheme.”

Kevin Green, chief executive of the Recruitment & Employment Confederation (REC) says: “The key will be to ensure that the incentive scheme is easy to administer for employers. We have already seen businesses struggle with apprenticeships due to the administrative complexities which is why a number of recruitment providers have stepped in to play a key intermediary role.”

Katerina Rüdiger, skills policy adviser at the Chartered Institute of Personnel and Development, cautions: “As the scheme progresses, government will also need to be careful to ensure that the end of the scheme doesn’t lead to a “cliff-edge” for the next generation of school leavers, as the subsidy is withdrawn.