Future Jobs Fund
An employment subsidy program implemented to combat unemployment among young people and those in disadvantaged areas during the Great Financial CrisisDownload PDF (146.78 KB)
In response to the ballooning unemployment rate during the Great Financial Crisis and the expected long-term impact of prolonged unemployment on young people, the UK government implemented the Future Jobs Fund. The program targeted young people for work benefiting the community in the hope of transitioning them to private sector employment. Government analysis showed that the program resulted in a net benefit for participants, employers, and society (1).
Unemployment is best addressed through direct, government intervention in times of crisis. Long term unemployment leads to social exclusion and should be combatted. The public sector can finance and implement these programs effectively to the benefit of participants and society as a whole.
Preventing the long-term scarring associated with unemployment during the Great Financial Crisis with the goal of creating 150,000 jobs that lasted at least 6 months.
105,220 jobs created between October 2009 and March 2011 (2).
Program targets the unemployed and those living in disadvantaged areas (4). More than 85% of participants were between 18 and 24 (5).
Jobs had to be at least 25 hours per week (3).
At least minimum wage. GBP 5.80 and GBP 4.83 for the main hourly rate and youth development rate respectively in October, 2009 with increases through the end of the program) (6).
GBP 650 million. A maximum subsidy of GBP 6,500 for job creation (40% up front and 60% in arrears). Once tax revenues and direct benefits were taken into account, there was a net cost of GBP 3,946 per FJF participant (7).
481 organizations hired workers using Future Jobs Fund subsidies.
Private and third sector (non-profit) employment. The work had to benefit local communities.
Designed as a temporary program in response to the Great Financial Crisis. Participants were encouraged to transfer into non-subsidized employment as quickly as possible and employers were required to support the transition. Evaluations found that the employers who participated in the FJF are more likely to hire unemployed young people. Participants benefitted from improved health outcomes, and reduced criminalized behaviors (8).
Recommendations from Fishwick, Lane, and Gardiner include: improve guidance from administrators, reducing administrative requirements that take participants away from their work, allow existing unemployment benefits to be utilized as a subsidy for wage bills, and improve targeting of job creation to important and growing industries (9).