19 Dec 2000
An independent report showing that long-term youth unemployment would be twice as high without the Government's New Deal for Young People programme was welcomed today by Scottish Secretary John Reid.
The report by the National Institute of Economic and Social Research (NIESR) on the first two years of New Deal (April 98 to March 2000) also concludes that the economy is richer by half a billion pounds a year due to the Government's investment in New Deal. Therefore in overall economic terms New Deal easily pays for itself.
Commenting on the report Mr Reid said:
"This report is proof of the vital contribution the New Deal makes to the economy and demonstrates that the Government's investment in New Deal far from being a wasted investment makes sound economic sense and has a profound impact in turning wasted youth into working youth. I am sure that the finding of this report will be of great assistance in our quest for continuous improvement of the New Deal to ensure that it continues to deliver jobs and hope for our young people."
" I was immensely proud last month to celebrate Scotland's part in delivering our promise to see 250,000 young people off benefit and into work. Over 29,000 young Scots have been helped into work since the introduction of New Deal beating our target by over 4,000 and rising. Youth unemployment has been slashed by over 60% as a result of the New Deal. We are for the first time in a generation able to contemplate making youth unemployment a thing of the past.
"This report underlines the success story of New Deal and says that without it the number of young people unemployed for six months or more would have been twice as high. NIESR's findings show that the economy is richer by half a billion pounds a year thanks to the net investment of £150 million a year by the Government in New Deal. Therefore in overall economic terms New Deal easily pays for itself. The report also lays rest to the myth that New Deal is an expensive waste of money. The net cost to the Government of £150 million a year translates into a cost per extra person in work a year of £4,000 or £7,000 excluding those on the environmental and voluntary options. This represents excellent value for the economy and for the young people who's lives are transformed through finding work"
"The value for young people finding work should never be underestimated. The New Deal has helped to provide hope and optimism for the future. Young people are being prepared for working life on an unprecedented scale. This report shows that the investment and effort made by everybody involved in the New Deal has been well worth it and is paying dividends for the economy and our young people."
NOTES TO NEWS EDITORS
1. The National Institute of Economic and Social Research report into the first two years of the New Deal is published today. Copies of the NIESR report are available from 020 7925 5407 or 020 7925 6487.
2. The latest New Deal figures show that in Scotland 29,200 young people have found work through the New Deal 18-24.