CREATING OPPORTUNITIES FOR YOUNG
LONG-TERM UNEMPLOYED PEOPLE
RESEARCH REPORT: JUNE 2012
Summary and public policy implications
Youth unemployment in the UK is at record levels. 1.02m young people aged 16 to 24 are unemployed and
over 200,000 are classified as the long-term unemployed – the highest figures since the 80’s and 90’s. There
is a worrying view that the UK faces a ‘lost generation’ of talent and ICAEW has commissioned this research
project to assess how ICAEW Chartered Accountants are ready and willing to help young people through
these difficult times.
ICAEW members lead and support all types of businesses across the UK. Our research shows that many UK
businesses would consider creating a job opportunity, or have already done so, for a young long-term
unemployed person. In addition a majority of businesses would provide the long-term young and
unemployed with some form of practical training through an apprenticeship, internship or a short-term work
experience placement.
However our research has found a perception that the long-term young unemployed may have a poor
attitude to work. This is a challenge for policy-makers to consider how young people are prepared for the
workplace through enterprise education. More crucial is the guidance our research offers on mentoring. The
majority of these senior finance professionals would consider mentoring a young person starting their
business, assuming that time and commitment expectations were reasonable. This suggests that when
developing routes of engagement with the long-term young and unemployed, provisions should not be
prescriptive or one-size-fits-all in their approach. For mentoring to be a success for the mentor and mentee,
engagement should be flexible and incentivise take-up. This includes thorough consideration of time and
forms of engagement such as phone-to-phone rather than face-to-face support.
Many businesses have, or would consider creating, a job opportunity for a young long-term
unemployed person.
Our latest research among senior finance professionals in the UK indicates that many businesses already
have, or would consider creating, a job opportunity for a young long-term unemployed person.
There are some differences by size of company, with large companies (250+ FTEs) most likely to have
already created this type of opportunity (Fig 1), and micro businesses (<10 FTEs) being the least likely to
consider doing this.
Fig 1: Attitudes towards considering creating a job opportunity
for a young long-term unemployed person
2%
2%
7%
43%
21%
Don't know
23%
Would not
consider
35%
65%
38%
45%
17%
13%
31%
Would
consider
27%
6%
Micro (<10
FTEs)
(n=48)
25%
Currently
doing
Small (10-49 Medium (50- Large (250+
FTEs)
249 FTEs)
FTEs)
(n=64)
(n=93)
(n=124)
1
The main drivers for creating such a job opportunity are to:
 bring young talent into the company;
 give opportunities to young people;
 train somebody who is unskilled; and
 meet the company’s sustainability/corporate social responsibility objectives – especially among
larger companies (250+ FTEs).
Encouragingly, those businesses that have already created such a job opportunity would consider doing so
again.
Financial incentives would encourage some to consider creating jobs.
Those that would not consider creating a job opportunity for a young long-term unemployed person cite
concerns such as the perceived time and resources it would take to hire and train them and, for some, a
preference to hire skilled, experienced people.
However, with suitable incentives, such as funding, government subsidy or tax support, some of these
businesses could be persuaded to consider creating this type of role, especially those in small and mediumsized businesses (Fig 2).
Fig 2: Willingness to create a job opportunity
for a young long-term unemployed person
23%
17%
8%
10%
38%
45%
17%
13%
31%
Would
consider
with
incentives
Would
consider
without
incentives
27%
6%
Micro (<10
FTEs)
(n=48)
25%
Currently
doing
Small (10-49 Medium (50- Large (250+
FTEs)
249 FTEs)
FTEs)
(n=64)
(n=93)
(n=124)
2
There is a general air of goodwill towards supporting initiatives that may help young longterm unemployed people into employment.
More than half of those surveyed in small, medium and large businesses consider taking on a young longterm unemployed person as an apprentice or on a short-term (two to eight weeks) work experience
placement or as an intern, that is, a longer work experience placement (Fig 3).
By contrast, micro businesses, employing less than 10 employees, are less likely than others to consider any
of these options (with more than half claiming that they would not consider any of them). This sentiment is
much in line with their reluctance to consider creating a job opportunity for a young long-term unemployed
person.
Fig 3: Proportion that would consider taking on a young long-term unemployed person
on a short-term work placement, as an intern or as apprentice
Short term (2-8 weeks) work placement
Apprentice
Would consider all three
Intern (longer work experience placement)
Would not consider any
75%
53%
63%60%
52%
60%
63%
58%59%
54%
38%
37%
31%
20%
35%
28%
14%
10%
11%
6%
Micro (<10 FTEs)
Small (10-49 FTEs)
Medium (50-249 FTEs)
Large (250+ FTEs)
(n=48)
(n=64)
(n=93)
(n=124)
One challenge for long-term unemployed people seeking work is a perception that they
could have a poor attitude to work.
It is encouraging that one-fifth does not feel that a long-term unemployed person would present any specific
challenges to a potential employer.
But among others, the most commonly mentioned concern is that they could have a poor attitude to work or
not be used to working hard.
There is widespread support, in principle, to acting as a mentor.
Overall, the majority (69%) of the senior finance professionals surveyed say that in principle, they would
consider mentoring a young person starting a business. But this would depend on the time and commitment
expected from them to be what they would consider ‘reasonable’.
Those with no interest in mentoring often cite a lack of time.
METHOD
This report is based on 372 telephone interviews conducted among ICAEW members working in commercial
businesses. The sample was controlled to ensure a reasonable representation by region, company size and
sector. Fieldwork was conducted by Kudos Research between 10 April and 11 May 2012.
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CONTACT
Yvonne Burr
Head of Strategic Research
+44 (0)20 7920 8426
[email protected]
Fatima Hassan
Public Policy Manager
+44 (0)20 7920 8617
[email protected]
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