Headlines: May 17th, 2001

New research from the Institute of Fiscal Studies describes the New Deal for young people as a ‘modest success’.Research by the IFS compares young people in the New Deal pilot areas (where the policy was introduced three months early) compared to non-pilot areas. It also looks at how well the younger unemployed fared compared to the older unemployed who where not eligible for the New Deal. Both of these control groups gave the same basic result:

The study found that young unemployed men are about 20% more likely to go into jobs between their sixth and tenth months of unemployment as a direct result of the New Deal.

It also showed that the level of employment of young people is about 17,000 higher per year higher as a result of the New Deal

This figure is set against more than a quarter of a million ‘new-dealers’ who are in work. The IFS says that the great majority of those people would have attained employment even in the absence of the New Deal.

Information from: No More Skivvy Schemes? Active Labour Market Policies and the British New Deal for the Young Unemployed in Context by John Van Reenen, Institute for Fiscal Studies Working Paper W01/09.

Link: ifs.org.uk