The Government’s New Deal has the potential to reduce skills shortages, according to a report from the Industrial Society, published this week.
Research on the controversial welfare-to-work scheme shows that where New Deal advisers work closely with employers, the scheme can find sustained jobs for “hard-to-place” young unemployed people.
In the past the New Deal scheme has been plagued by high drop-out rates.
The New Deal: A Good Deal Better confirms a pattern of weak basic skills among many adult job-seekers, but also indicates that some merely lack confidence. Employers which have recruited successfully have invested heavily in training.
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“Asda and Peugeot gained much out of the New Deal because they adopted the approach of ‘give us the raw recruits and we’ll train them’ – rather than crossing their fingers in the hope that the right people would apply. This has also been the case with Anglian Water,” the report concludes.