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Government to offer firms ‘golden hello’

From CIPD's People Management magazine.

Employers will get up to £2,500 for every unemployed person they recruit

12 January 2009

The government has announced plans to pay employers up to £2,500 for every unemployed person they recruit and train, as part of measures to safeguard jobs during the recession.

The incentives were announced following the government’s job summit, which the CIPD, among others, attended to give advice on how to deal with increasing unemployment, which now stands at 1.8 million. Last week computer manufacturer Dell announced the loss of 1,900 jobs in Ireland, and Marks and Spencer said 1,200 jobs were being cut in the UK.

The Department of Work and Pensions and the Department for Innovation, Universities and Skills will invest £500 million over two years to help those who have been unemployed for over six months.

Work and Pensions minister James Purnell said: “There are still over half a million jobs available, and employers are still recruiting – we will do everything we can get people into those jobs. Our message is simple, the longer a person is out of work the harder we will work for them.”

Meanwhile, the Federation of Small Businesses has launched a blueprint for tackling rising unemployment with a plan to create 400,000 new jobs by promoting part-time working, investing in apprenticeships and giving small business more opportunities to bid for public contracts. John Wright, national chairman, said: “We are calling for the government to help small businesses to continue to invest in recruitment and training so they can grow stronger and more competitive, creating quality jobs and doing their bit to pull the UK out of the recession as quickly as possible.”