As we all know, unemployment is rising fast. In an attempt to encourage employers to keep recruiting, the Government is to award firms that recruit people who have been unemployed for more than six months “golden hellos” of up to £2,500 (external website).
At first sight, this seems like a promising initiative. However, is £2,500 really enough to encourage companies to employ people? Can this amount really be described as a “golden hello” - or is it more of a token gesture? I’m not sure that it will be a huge incentive, especially for larger companies. What’s more, employers may not even receive £2,500, as the money is to be awarded on a sliding scale based on the difficulty of the position, so it’s possible they could be awarded just a fraction of this amount.
My other concern is that if companies are not in a position to recruit new employees, being offered a financial incentive is not going to change that; either the jobs are available or they’re not.
So, while the Government’s new measure is well intended, I can’t help thinking it’s a little optimistic and that it will do little to prevent significant rises in unemployment.
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