Almost £90m to help young Scots into work

Almost £90 million is to be invested in helping Scotland’s young people into work and supporting small business growth, as part of record funding bringing together cash from the Scottish Government, local councils, Cosla, the European Commission and employers.

Up to 10,000 young people Scotland-wide are expected to be supported into work – particularly in small businesses – thanks to the £87.85 million total investment package detailed today by First Minister Alex Salmond. An additional 3,000 jobs are expected to be created in small business around the country for workers of all ages.

In all, the investment package is comprised of two different funding streams:

• The £50 million Youth Employment Scotland Fund, made up of £25 million from the Scottish Government and European Social Fund, matched by £25 million worth of in-kind support from employers and local councils
• The £37.85 million SME Growth Programme to support businesses to grow and create employment opportunities for people of all ages – including young people, made up of £15.1 million cash from the European Regional Development Fund matched by £22.75 million worth of support from Scottish Enterprise and Business Gateway.

Details were unveiled by First Minister Alex Salmond this morning at Millar Callaghan Engineering in Irvine. Mr Salmond said: “No government across these islands has ever shown such commitment to ensuring young people are able to build their skills, develop real job experience and find tangible employment as this administration. This work continues to reap rewards, with figures released today showing youth employment rising and youth unemployment falling.

“Since Angela Constance was appointed as Minister for Youth Employment in December 2011 youth unemployment has fallen from 25.4 per cent to 15.2 per cent. Now Scotland has one of the lowest youth unemployment rates in Europe. However, there is not a shred of complacency in our approach.

“We know that Scottish progress is threatened by Westminster austerity and Chancellor Osborne’s failure to back economic growth. Therefore, this substantial announcement illustrates our determination for further success in a Team Scotland drive against youth unemployment.

“Today’s announcement of a further £88 million investment represents an enormous contribution to furthering that cause. Up to 10,000 young people will get real jobs thanks to this money – 10,000 young people getting the chance to build themselves real futures with real careers. That’s in addition to a further 3,000 jobs for people of all ages working in Scotland’s small business sector.

“Thanks to working together with employers, councils, Cosla and public agencies, we’ll be able to build considerably on the £25 million of European structural funds earmarked last year to promote youth jobs – more than tripling the original sum.

“These two programmes will help more small and medium sized businesses recruit young people and build capacity for economic growth. The total investment available is unprecedented in its ambition and will make sure employers have the right help in place to take on more young staff and grow their business.

“We already know employers are willing. Here at Millar Callaghan, as at many workplaces around the country, young staff are being taken on, learning new skills and in turn helping bring in new business. We want all small companies to take advantage of the support available to make young people their business and, in turn, to grow their business.

“Our partnership approach was exemplified by the Employment Summit held with the STUC and our partners last year. However, cooperation on this cause is not just for government and social partners. It is the responsibility of every adult Scot, in our national endeavour to defeat youth unemployment.”

Also speaking at the launch event in Ayrshire were Cosla President Councillor David O’Neill and representatives of the Ayrshire Youth Employment Service.

The news came on the day that it was announced that the number of jobless in Scotland fell by 6,000 to 194,000 between February and April this year and that youth unemployment was 6.1 per cent lower than the same period last year.

COSLA President Councillor David O’Neill said: “Scotland’s Councils know that unemployment at a young age can have both dramatic and lifelong repercussions. We have invested significant local resource and effort into giving our young people the utmost support as they make the transition into the world of work. The Youth Employment Scotland Fund will add to this investment and allow us to deliver even more over the next year.

“All of Scotland’s local authorities have been successful in their bids for the Youth Employment Scotland fund and will be focused on delivering the maximum possible for our young people.”

A spokesman for László Andor, Commissioner for Employment, Social Affairs and Inclusion from the European Commission said: “The European Commission welcomes the package of measures launched by the Scottish Government, in particular the employer recruitment incentives.

“The initiative supports small and medium enterprises to prevent jobless young people from becoming long-term unemployed and providing employment opportunities for youngsters across Scotland, aged 16-24, who encounter difficulty in obtaining employment. These measures are supported by the European Social Fund. ”

European Commission Spokesperson for Regional Policy, Shirin Wheeler, commented: “The European Regional Development Fund is providing a series of targeted investments in Scottish SMEs, enabling them to become more competitive – to realise their growth potential and to create sustainable jobs. We are actively improving business connectivity and access to finance.”

Councillor Stephen Hagan, COSLA’s Spokesperson for Development, Economy and Sustainability said: “The Business Gateway service delivered by local government and its partners already provides support to Scotland’s existing businesses helping them to grow and create employment opportunities. This enterprising combination of funds and support will help Business Gateway add even more value to Scotland’s economy whilst assisting Scotland’s young people gain the skills necessary for a fulfilling career.”

While welcoming the announcement, Alison Johnstone, Green MSP for Lothian and a member of Holyrood’s economy committee, said further investment in small businesses is urgently needed to help drive down youth unemployment.

She said: “It’s encouraging to see this drop. But we continue to see problems in our economy where people want to do more hours to cope with the rising cost of living but can’t get the work. And we continue to see small and micro businesses squeezed out of being able to bid for public contracts.

“Investment by the Scottish Government in small and medium sized businesses to take on young people is very welcome. I’d like to see more of this kind of initiative rather than the false economy of tax cuts to lure big businesses with what are usually poorly paid, insecure jobs. By growing our local economies and our small businesses we have a better chance of success.”