Jobs Growth Wales – is it the answer?

Finance Minister Jane Hutt recently announced plans for a new £75 million initiative, Jobs Growth Wales, to be introduced from April 2012. The initiative is specifically designed to target youth unemployment, those aged between 16 and 24, who will have the opportunity to work over 25 hours a week for at least the minimum wage. It is hoped those taking advantage of the initiative will have been given a ‘leg up’ onto a career ladder, paving the way for future success.

Ms Hutt was keen to acknowledge the fact that there was little room for manoeuvre in the budget given the economic circumstances, but that the Government have a duty to the young. That the only way to create a skilled workforce was to invest in youth, and invest in a scheme creating 4,000 jobs a year from 2012.

We’ve already looked at the ‘lost’ generation of youth but taking more of a business based approach can help give context to not only the economic situation, but more specifically the dilemma facing the Government relating to unemployed youth.

It stands to reason that business revolves around risk, and how big the risks one is willing to take. Taking a significant risk means a greater chance of failure but similarly, the greater the returns (potentially). At turbulent economic times, people (both businesses & customers) retreat into their shells. They prefer to ‘ride it out’, to not spend money they no longer have, to wait for other people to make the first move. In essence people act as anyone would in the same situation.

To draw a parallel with the Government’s current predicament, up until now they have been cutting spending considerably in a number of areas, realigning budgets, and reaffirming plans to follow the same strategy until the deficit is cleared. Cutting investment is also cutting out risk, but it’s also cutting out our chances of making a high return – a return that could go towards clearing that deficit.

Going for growth is essential, it’s a truism. But the Government have been forced into a corner, and every penny they spend is scrutinised – so don’t expect expansive plans for growth, expect them to dip their toes in various initiatives to find what works. Whether that’s enough, whether there should be more done? Those questions can only be answered by the people….