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Latest NewsEconomics, government & businessJob creation and losses

Future Jobs Fund for youth unemployment must be targeted to help worst hit cities

by Tara Craig 24 Jun 2009
by Tara Craig 24 Jun 2009

The government’s £1bn Future Jobs Fund aimed at combatting youth unemployment will help fewer than half of the 350,000 young people expected to be out of work by December 2011, a think-tank has warned.

Centre for Cities has urged the government to target the money from the fund, announced in this year’s Budget, towards young, work-ready unemployed people in the hardest hit cities, such as Swindon and Hull, to help get them back into work.

Dermot Finch, the think-tank’s director, said: “The Future Jobs Fund will not be big enough to help every long-term unemployed young person. It will need to be targeted very carefully towards young people in cities that have seen a recent rise in unemployment due to the recession.”

Swindon saw the greatest growth in youth unemployment, with 7.67% of young people now claiming benefits, up 5.28% since February last year. Hull is the worst hit, with 9.85% of its young people out of work, closely followed by Sunderland at 9.45%, and Barnsley at 9.13%.

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The majority of the badly affected cities are in the north of England, but several southern cities are now experiencing severe youth unemployment, Centre for Cities warned.

The call follows a warning from the Chartered Institute of Personnel and Developmentthat 2009 will be a bleak year for graduates.

Tara Craig

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