Graduate employment scheme could 'create 5,000 jobs'
A new report from the Federation of Small Business (FSB)outlines a proposal for what it believes is a much-needed graduate employment scheme.
With recent research by High Fliers suggesting that a quarter of graduate jobs have been cut by the UK's top firms, the FSB believes an extra 5,000 placement positions could be created for graduates in small businesses by a new scheme.
By developing a Graduate Employment Scheme costing £3 million, the FSB has calculated that the government could potentially save £600 for each graduate not claiming jobseekers' allowance.
John Wright, the FSB's national chairman, explained: "Graduate unemployment is set to soar to unprecedented levels this year as businesses struggle to make ends meet and cut back on recruiting university leavers."
Small businesses are the main employers (69 per cent) of students straight out of education, and into apprenticeship schemes, enhancing career development.
Approximately 25 per cent of graduate internships lead to full-time jobs, so a Graduate Employment Scheme would be of tangible benefit to both graduates and employers, the FSB says.
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I wholeheartedly support this. In many business sectors I think up to 50% of internships lead to permanent jobs.
Over what time frame are we talking about when we get these cost savings figures? £600 saving per student... well to be understanding - the job seekers allowance is an on going benefit, and hence any cost benefit must be defined by time period?
Thats great news, I remember my brother was put of from applying for a graduate entry program because of the competition. Its crazy out there especally now with the current economic climate.
I was at a careers talk at nPower recently and they stated they had 2500 applicants for ca 20 graduate places mostly in engineering. I think for the major companies 50-100:1 is not unusual.