FSB: Small firms are key to tackling graduate and youth unemployment

Small businesses are vital to tackling graduate and youth unemployment, the Federation of Small Businesses (FSB) will tell delegates at the Labour Party Conference next week.

Youth unemployment has reached nearly 950,000. Graduates and school leavers are entering the job market at one of the worst times since 1992. The FSB believes that the Government must ensure small businesses are given the tools they need to take on more graduate interns and apprentices to tackle youth unemployment and help bring the economy out of recession.

The FSB is taking its ’employment centre’ stand to the Labour Party Conference to tell delegates how small businesses can help stem unemployment and create jobs through practical measures, including:

Investing £3 million of an existing £32 million pot of money to help promote and extend graduate internships – creating an extra 5,000 placements;
An overhaul of apprenticeships, including an increase in the national minimum wage for apprentices from £95 to £123 per week;
Re-introduction of the 1990s Enterprise Allowance Scheme to give those with entrepreneurial skills who have been made unemployed the chance to become self-employed and help create another 36,000 jobs; and
The Introduction of a wage-subsidy for workers that have had their hours cut to avoid redundancies and enabling employers to retain their staff and skill sets.

John Wright, National Chairman, Federation of Small Businesses, said:

“Graduates and school leavers are entering the job market in turbulent times, yet these business men and women are crucial to the future of our economy. Seven in ten of all apprenticeships already happen in small businesses and around 20 per cent would take on a graduate intern. Investing money in these areas will not only help small firms grow at a difficult time, but will ensure that the future workers and entrepreneurs are equipped with the skills they need.

“Self-employment must also be a real option for those that have lost their jobs. Re-introducing the Enterprise Allowance Scheme could create an extra 36,000 jobs over the next year. Research shows that small firms grow faster than larger businesses, creating more employment opportunities for the future.

“Small firms truly are the backbone of our economy and are ready to do their bit to help stimulate the economy, get people back into work and get the country back into recovery.”