Tag Archives: unemployment

When Opportunity Knocks what are you going to do?

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Creative Commons License photo credit: Bytemarks

By Rob Pearce, Director Renaisi

And the depressing stats keep coming. Unemployment in the UK is now at its highest level since 1994. 1 million young people are now out of work. What a waste of extraordinary talent. Since the summer there has been much gnashing of teeth about ‘what to do’ about young people in our inner cities. Why is it they trashed their own communities? Is it most of them are criminals hell bent on destruction or gang members at war with the police? Of course why they did it is very complex and goes beyond simplistic explanations of thuggery and ‘pure evil’. Because of this much news print, academic journals and Council meetings (never mind the blogosphere!!) continue to be filled with people trying to understand why and what to do about it.

But of course what most people want is some action. In that vein the one blog on the riots that struck a chord with me was called ‘lessons from across the pond’  by Gerald Chertavian, founder of the American ‘not for profit’ Year Up (www.theopportunitymovement.com) (I must confess at this point that we visited Year Up in New York earlier this year so I was already a great fan). I live in Hackney and, like many, had the slightly surreal experience of watching live pictures on my TV screen, via a helicopter, of the street a few hundred yards away from my front door. So to read Gerald’s view, and to know a little about Year Up already, was quite illuminating and to be honest quite refreshing. His analysis of why was particularly interesting. He points to rising inequality, inadequate training and high youth unemployment coupled with an economy increasingly demanding ever higher skills from youngsters…sound familiar for those of us in east London? Uncanny isn’t it? But equally important is what he is doing about it.

Gerald’s big thing is opportunity. You have to provide young people in our cities with opportunities and where there are barriers to opportunity you have to help bridge the divide or help provide pathways through them. His ‘Year Up’ programme (www.yearup.org) does precisely that by working with employers to fill their skills gaps with talented urban youth – connecting economic justice for young people  with economic prosperity for business as they say. Year Up’s success is reflected in its rapid growth. They are now delivering in 10 cities across the United States with impressive results getting young people into real well paid jobs (not unpaid short term internships!!). Gerald’s clarion call to create an ‘opportunity movement’ is certainly one we should heed here in east London. Of course I’m fully signed up. But what now? We need less talk and more action!

We should start of course where the opportunities are. Here in east London there are signs that it is Tech companies that are leading the charge for growth. The Coalition Government’s Tech City seems to be turning from a bit of a ‘mirage’ into something a little more tangible as the demand for developers etc accelerates as local companies grow and new ones move in. And of course there has always been significant demand from the big boys in the city where technology is the lifeblood of business and financial services. But will local talent fill these vacancies? Will a young person on the Wenlock Barn estate see their future in these businesses? All the evidence suggests that they have the talent and the aspiration but because of where they’re from they rarely get the chance. The divide between the expectations and needs of employers and the skills of local youngsters is too big.

We need to do something that opens up these opportunities and helps employers realise that they have the talent they need quite literally on their doorstep.  We need to convince them that it makes good business sense to invest in local young people to build their businesses. And we need to provide an intensive and high quality training programme for local young people from low income families that gives them the technical and ‘work ready’ skills and knowledge employers want at fair price. Doing that means “economic justice for young people and economic prosperity for business”.

Renaisi and Hackney Community College, with support from Cisco and the Tech City Investment Company, are working to create an east London version of Year UP focussing on jobs in the tech industry, creating opportunities for local young people and delivering the talent local businesses need. Of course the UK is different in many ways to the US but the problems to be solved are very similar as are the principles governing what works.

So, I also propose we start an east London opportunity movement right here, right now. Tech City Apprenticeships is our contribution. What’s yours?

Helping neighbourhoods work

By Clive Tritton, Chief Executive Renaisi

A few years ago, I received three requests in a week to speak at conferences about Renaisi’s emerging employment programme, Renaisi Works. The interest emerged because the focus of our work put Registered Social Landlords (RSLs) and Housing Associations at the forefront of our outreach and engagement activities and this seemed to be having a major impact.

Our approach wasn’t rocket science. It included the usual flexible end to end delivery that is at the heart of most good employment work. But it was aimed at those outside the main system. Those people who were not on JSA and for whom the idea of turning up to work or to sign on every fortnight was completely alien. In particular, we focused on parents who had been away from work for some time and had no confidence in their ability to get work or that the system had anything to offer them.

Our work acknowledged that individuals had a better relationship with their landlords than they did in the officialdom associated with town halls and job centres.

Pulling the RSLs into the programme was much easier than we envisaged – in fact they were champing at the bit. There were 8 contracted into the programme within three months. They saw the benefits for themselves in improving the welfare of their tenants.

The project was extremely successful and a number of people found employment who hadn’t even been on the JCP radar. This success was rightly attributed to the work of the RSLs.

So where are they now and how do they fit into the Work Programme? Over the last few weeks we have picked up our conversations with many of the RSLs with whom we were working at that time. They aren’t touching the Work Programme!. There are few other resources available to reach those that, if reports are right, will lose out as a result of the Work Programme model and, it seems that most RSLs have been forced to return to their core business. In fact, RSLs are currently far more preoccupied by HCA cuts and changes to housing benefits regimes (and consequent impacts on their ability to borrow) than they are about their tenants’ ability to find work.

The Work Programme may or may not be the answer for many for whom finding a job is important – the jury is still out. However, for those outside the system and in most need of support, we undoubtedly need a different approach. Social landlords know their tenants best. If they can’t make it to the table, we have a real problem.

 

A cautious welcome for the Work Programme

The government’s Work Programme is now underway and we are welcoming clients through the doors of our east and west London offices. We’re proud to be delivery partners for three prime contractors: MAXIMUS and Ingeus Deloitte in West London and Careers Development Group (CDG) in East London.

Replacing a proliferation of welfare to work initiatives which preceded it, this single programme approach is designed to give people greater freedom when accessing services to help them into employment. This is a concept endorsed by Renaisi which has many years experience delivering tailor-made solutions for people wanting to improve their work prospects, but we accept the new approach with caution.

The Work Programme is perceived by many as a cost-cutting approach to dealing with worklessness.  Getting people into meaningful work is certainly not something that can be done on the cheap or by cutting corners.  There’s a broad range of issues that need to be addressed including employer engagement and specialist support for those seeking work, links with local neighbourhoods and community groups and the relationship with local authorities, local enterprise partnerships and training providers.  With limited resources to address these issues, providers might be forced to work with the ‘easy to reach’.

There’s also the fact that the main contracts are now in the hands of large organisations, some of whom have greater expertise in logistics than employment, although we seem to have predominantly avoided those in London. Meanwhile, the smaller and arguably more knowledgeable third sector organisations will suffer the effect of payment by results as cash flow becomes tight. This seems to contradict the spirit of the government’s Localism Bill of devolving to a local level.

Additionally, the  Work Programme is mandatory  and  there is nothing to replace the wider initiatives aimed at supporting self referrals or outreach for those who are economically inactive but not eligible for the scheme so it seems we’re left with a gaping hole in employment provision.

With these concerns in mind, we enter this new approach with guarded enthusiasm as we can see there will be some positive outcomes – the simplicity of the model can only be a good thing for the out-of-work citizen. We propose however that evaluation should start early and focus on the critical issues which, if missed, could have significant repercussions.