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Effects of economic downturn

09/02/2009

A summit on how to better support individuals and business facing hardship due to the economic downturn took place in Glasgow today.

The event brought together Education Secretary Fiona Hyslop, UK Minister for State for Welfare Reform Tony McNulty, spokespeople from all of Scotland's main political parties, representatives of the trade unions, Skills Development Scotland and JobCentre Plus.

They discussed how to build on support provided through PACE - Partnership Action for Continuing Employment - Scotland's unique partnership initiative which provides help to employees when an organisation faces potential redundancies.

They examined the challenges ahead for Scotland's job market, solutions on how best to prevent redundancies and where that isn't possible, how to ensure people are given the right support to get back into work as quickly as possible.

It follows a range of recent Government initiatives to help support Scotland's people and economy during the current downturn, including:

  • Allocation of an additional £16 million in 2009-10, through the Budget Bill, to increase the number of new starts on Modern Apprenticeships to 18,500 in 2009-10 (an increase of 7,800) and a commitment to sustain these individuals in their places for the duration of their apprenticeship. These additional places will support key sectors, such as food and drink, hospitality and tourism and energy and will be a mixture of 16-19 and adult apprenticeships
  • Allocation of £7 million to help colleges respond to the needs of people who have been made redundant by helping them with the training and skills they need to get back into work and stay in work

Ahead of the summit Ms Hyslop said:

"During these difficult economic times, we are determined to work with organisations and agencies, both north and south of the border and across the political spectrum, to ensure Scotland's people and businesses get the help they need to address the challenges ahead.

"Helping people stay in work or get back into work is a key part of that and lies at the heart of our Economic Recovery Plan. Today's conference, which builds on the improvements to PACE I announced in January, the provisions in Scotland's Budget Bill to safeguard jobs and the recent 7m pounds allocated to Scotland's colleges to help those made redundant acquiring new skills, will bring together everyone with an interest in improving support for those facing the prospect of unemployment.

"I expect to receive a report with the recommendations from this summit within the next few weeks to help inform any further steps which can be taken towards helping people to stay in work, get back into work and to assist Scotland's economic recovery.

Mr McNulty, who later today will also join Ms Hyslop at the launch of an integrated Employment and Skills Service pilot in Port Glasgow, said:

"Across the UK families are feeling the effects of the global economic downturn - and Scotland is no different.

"In these difficult times people need Government and its agencies to work together to provide the best possible support. People aren't interested in who provides which service, they just need help to find work quickly, to retrain if necessary, and to continue to support themselves and their families.

"I hope the real help on offer through the joint pilot project being pioneered by Jobcentre Plus and Skills Development Scotland in Port Glasgow will prove successful and shape the future of employment and skills support in Scotland."

Damien Yeates, Chief Executive of Skills Development Scotland, said:

"Today's conference underlines that Government ministers and the agencies that provide support to those affected by redundancy have a clear, common purpose. That purpose is to make sure that the people of Scotland get the right information and support, at the right time, to help them through these difficult economic times.

"It is also absolutely vital that we continue to build on Scotland's world class skills base to ensure that we are equipped to respond to the economic challenges and position our country for significant growth in the future.

"The time for joined-up, targeted and innovative action is now. We have already made significant enhancements to the PACE programme, and we welcome this opportunity to discuss how we can further develop the services we currently provide, to help people get back into work or training as quickly as possible."

Page updated: Monday, February 09, 2009