This item was published during the term of a previous administration that ended in April 2007
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Youngsters satisfied with New Deal
27/02/2002
An independent report published today finds high levels of self-confidence, motivation, and commitment to training and development among young people involved in New Deal schemes.
The Evaluation of New Deal for Young People in Scotland also reveals that for those in jobs, satisfaction with the job and with training were very high - with around 90% of individuals reporting satisfaction.
Over 40,000 young people aged 18-24 have found work through the New Deal in Scotland. Since its introduction in May 1997, youth unemployment has fallen by 81%. It is estimated that the successful performance of New Deal contributes in the region of £50 million a year to the Scottish economy.
The evaluation compares the success of the five options available to young people. Whilst the Employment option is probably the strongest performer overall in getting young people into work, the Full Time Education and Training and Environment Task Force options are successful in improving the job opportunities for more disadvantaged people. They are particularly successful in improving literacy and numeracy skills.
The Voluntary Sector Option is particularly attractive to young women and does well in improving their employability.
The report also finds that:
- In Scotland, about one in six (16%) of New Deal participants had experienced problems with literacy or numeracy since the age of 16. When interviewed at stage two only 9% of respondents reported problems
- Among Scottish respondents who had no qualifications at the time of the stage one survey, about 13% had obtained qualifications by stage two. Among those who already had some qualifications a fifth obtained further qualifications
- The Employment Option performs best in terms of increasing chances of getting off Job Seekers Allowance (JSA), staying off JSA and getting into jobs. Just under three quarters (74.3%) were off JSA at February 2001
- For those in jobs both job satisfaction and satisfaction with training were very high, with roughly 90% of individuals reporting satisfaction
- Participants felt that the help offered by the New Deal Personal Advisers was the most positive aspect of the programme. 70% of respondents in Scotland expressed satisfaction with the help offered by the New Deal Personal Adviser (NDPA) at the time of the stage 2 interview
The success of New Deal has raised new challenges in meeting the needs of those hardest to help back into work. A National Audit Office paper published today estimates that 3,000 young people returned to a period of long term unemployment.
The Executive has recognised the needs of the hardest to help clients and is now providing tailored support for them. The Evaluation backs the range of approaches under the improved and more flexible approach taken by the New Deal Next Phase Programme, launched in March last year.
These include:
Tailored Pathways - Flexible training/work experience packages for young people, tailored to the needs of local employers.
Progress2Work - Specialist support to help clients with a history of drugs misuse.
StepUP - Offering a waged job to those who have not succeeded in New Deal
Local Account Managers - Gathering local labour market information and working with employers to understand their long term recruitment and skills needs, which will then be reflected in New Deal provision.
Advisors Discretionary fund - Up to £300 available to Personal Advisors to tackle the barriers which clients face in taking up a job opportunity.
Increased focus on mentoring - Support available to clients from mentors throughout their time on New Deal.
Sectoral Initiatives - Focussing on 7 key sectors of the economy: Construction; Energy; Financial, IT; Public Sector/NHS; Retail; and Tourism/Hospitality. Identifying the key skills required by employers, and to work with training providers to develop courses that address employers' needs.
Welcoming the report, Enterprise, Transport and Lifelong Learning Minister Wendy Alexander said:
"New Deal has made a fundamental contribution to improving the lives of thousands of young Scots. The report published today stresses the success of a flexible and varied approach to meeting the diverse needs of those struggling to find a job. The tailored and dedicated approach of New Deal Next Phase is critical to supporting the efforts of all jobseekers.
"The New Deal: Next Phase helps get people into jobs by matching the skills and training needs of unemployed young people with needs of employers.
"With the redesigned programme, New Deal Next Phase, there is even more that can be achieved to reduce unemployment black spots and assist an ever decreasing harder to help client group into employment."
UK Work and Pensions Secretary Alistair Darling said:
"The success of New Deal has helped give young people the skills, confidence and motivation to help them find work and improve their prospects of doing so, and we are now seeing similar results among those aged 25 and over.
"Without the New Deal thousands on young men and women would have been stuck on the dole. The New Deal, underpinned by a stable economy, is making a real difference.
"We are constantly looking to build on New Deal's success. That is why we have been making progress introducing new measures to provide more help to those who need it most."
The most recent independent evaluation of New Deal by the National Institute of Economic and Social Research confirmed that
- half the drop in youth unemployment since 1997 is due to New Deal and half due to the strength of the Scottish economy
- New Deal is generating £0.5 billion per annum
New Deal: Next Phase will deliver on commitments in the Green Paper "Towards Full Employment in a Modern Society". Published in March 2001, it set out a series of changes and initiatives within the New Deal programme (known as 'New Deal: Next Phase') designed to address harder to help clients as unemployment rates fall and to focus on the needs of employers in sectors where there are employment opportunities