Many companies have projects that they sponsor or charities that they donate to in the course of their business, benefiting a multitude of good causes. But, what about one cause, slowly unfolding before us and on an inevitable growth curve over the next few months.
Effects of Covid-19 on Youth Unemployment
COVID-19 has brought with it a lot of sadness and disruption to thousands personally, but economically worse is yet to come.
According to the Resolution Foundation (The Guardian 7th October, 2020, Richard Partington “Covid generation: UK youth unemployment ‘set to triple to 80s levels’”) from October to the end of this year we could be facing an increase in youth unemployment (those aged 16-24 and not in education) from 5.5% to 17%. This would match 1984 level under the Thatcher Government, at a time of great economic disruption, most notably a year dominated by the miners’ strike.
Lasting Damage of Early Unemployment
This grim forecast is due to the COVID second wave and the fact the youngest and oldest of the workforce are overrepresented by job losses in the Leisure, Hospitality and Retail sectors. However, surveys show that it will be the younger age group that will suffer most from the lasting damage from unemployment early in their career, and the danger of subsequent mental health issues. The RF reported the proportion of adults experiencing poor mental health in 2020 had increased by 80% among 18- to 29-year-olds compared to a 2019, the biggest increase of any age group.
Government’s Kickstart Scheme
The Government’s Kickstart initiative announced in the summer is something we can all as businesses get involved in and help stem this threat of long term youth unemployment. It is something we can all easily add on to our Corporate and Social Responsibilities. Offering businesses funding to cover minimum wages for 25 hours a week on 6 month placements plus a £1500 grant for each placement, the Government is hoping that 16-24 year olds currently on Universal Credit and facing long term unemployment will gain vital work experience, professional development and, most of all, hope.
How Smaller Companies Can Apply
If the stipulation of a minimum of 30 roles per application is prohibitive for smaller companies, they are able to pool together with other companies or seek out a Gateway company who will coordinate applications. The Government is also offering £300 to the applicant (whether the company or the Gateway company) for each role started to cover application administration costs. So, unless you want to top the job up to full time or increase the wages, it really is an initiative that costs the company nothing except the time to fill in an application form and to write a job description for each role.
Finding a Kickstart Gateway
Atwood Tate are acting as a Gateway and we have had a wonderful response from SME client companies who want to get involved. If you would like further details about this scheme you can find FAQs on our website at www.atwoodtate.co.uk/kickstart or email us at email@example.com.