Better private sector engagement needed for employability opportunities, says Finance Committee

03.12.2012

Early private sector involvement is vital if employment initiatives are to succeed, according to the Finance Committee in its report on Improving Employability, published today.

The Committee focused on a number of areas as part of its inquiry on improving the employability of people who are furthest away from the job market. These included examining current initiatives to improve employability such as modern apprenticeships and work and training places, their evaluation and identification of barriers to success.

Based on oral evidence and workshops sessions it held in Dumfries and Galloway, North Ayrshire and Dundee, the Committee heard that small and medium sized businesses (SMEs)  in particular, are often asked to take part in skills initiatives only after a programme has already been developed. This disconnect means the initiative may not meet the needs of the employers or the job-seekers furthest from the labour market.

Committee Convener Kenneth Gibson MSP said:

“It is vital that we tackle this enduring problem of employability for those furthest from the job market. It will benefit Scotland’s public finances, its long term economic growth and the individuals themselves.

“While we welcome the Scottish Government’s support on funding SMEs in creating job opportunities, we seek greater detail on how SMEs are selected to offer job opportunities and why older job seekers out of their teens are excluded from some schemes. We also need better evaluation of how schemes act as an incentive to employers and deliver value for money.” 

The Committee also asked the Scottish Government to respond to the following points:

• The need for robust, independent evaluation of current Scottish Government skills and employment initiatives to establish the extent to which they support individuals from a disadvantaged background into sustainable employment and the nature and quality of employment obtained.

• Tailoring initiatives and programmes providing a package of support to meet the specific needs of vulnerable individuals so that they are not simply moved from one programme to another and do not “fall through the net”.

• The complexity of the skills and employment initiative landscape is due to the split of responsibilities between the UK and Scottish Government but there could be a reduction and greater flexibility of initiatives, programmes and strategies.

Background
In January and February 2012 the Finance Committee held a series of roundtable sessions on themes connected to fiscal sustainability with focus on inequalities and socio-economic deprivation. The Committee then decided to explore the need to improve employability of individuals experiencing high levels of multiple deprivation as a prerequisite to increasing sustainable economic growth.