New Deal programme for young unemployed people was introduced across the UK
in April 1998. In June 1998 the Government launched a separate New Deal for
Long-Term Unemployed People aged over 25+.
two years later we are starting to see some of the effects of these active
labour market policies on the UK economy.
enter New Deal by moving into a Gateway where they are given an interview and
support in choosing a suitable option.
main options are:
a subsidised job with
remaining in full-time
education and training
work within the
accredited voluntary sector and
work experience with
an environmental task force.
fifth option of staying on benefits has been taken away!
programme is designed to provide pathways back into work for the long term
unemployed – many of whom have become outsiders in the labour market
despite the continuing strength of the British economy. Higher levels of
employment and economic activity add to total national output and should help
to improve the overall performance of the labour market in sustaining long
run economic growth.
New Deal Delivering?
latest data on New Deal participants published shows that up to the end of
July 2000, over 518,000 people have now passed through the New Deal scheme,
402,000 have left leaving 116,000 currently on the programme. 237,040 young
people had entered employment. Of which 180,600 were in sustained jobs, and
56,440 in jobs lasting less than 13 weeks.
are wide differences in the success rate in getting New Deal participants
into work across the regions. Just over one third of participants among 18-24
year olds have moved into employment but in some cities (including
Birmingham) the percentage is only 25%.
New Deal programme for workers aged 25+ has been running for a shorter time
period. Nonetheless less than 15% of participants have moved into employment.
In some areas (Glasgow for example) only one person in ten has passed through
the programme into either a subsidised job or non-subsidised employment. Note
that these tables show people who have moved into “sustained” jobs
involving employment for three months or more.