Forum Youth Rate Recommendation

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A decision made on 25 May 2012:

Decision Reference: MD-S-2012- 0041
Decision Summary Title :	DS Forum Youth Rate Recommendation		Date of Decision Summary:	18 May 2012
Decision Summary Author:	Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Minister response to Youth Rate Recomm		Date of Written Report:	18 May 2012
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: States Report - Employment Forum’s Youth Rate Recommendation and Minister’s response
Decision(s): The Minister decided to present to the States the Employment Forum’s Youth Rate Recommendation and his response to that recommendation.
Reason(s) for Decision: As part of a wider strategy focusing on unemployment, and due to increasing unemployment, particularly amongst young people, the Social Security Minister directed the Employment Forum to review, as a matter of urgency, the impact of introducing a youth rate that would be payable at an hourly rate lower than the minimum wage. Based on independent research undertaken by Island Analysis, the Employment Forum’s report recommends to the Social Security Minister that a youth rate should not be proposed for Jersey. The Minister has accepted that recommendation.
Resource Implications: There are no financial or manpower implications.
Action required: Policy Principal to provide copies and request the Greffier of the States to arrange for a Report to be presented to the States at the earliest opportunity.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Forum Youth Rate Recommendation

Report

Employment Forum: Youth Rate Recommendation

Minister’s response

As part of the ‘Back to Work’ Ministerial Taskforce’s strategy to focus on increasing unemployment, I directed the Employment Forum to review, as a matter of urgency, the impact of introducing a youth rate that would be payable at an hourly rate that is lower than the minimum wage.

My objective was to introduce a youth rate that would encourage employers to employ more young people, give young people more opportunities in a difficult employment market and provide them with valuable work experience.

I would like to thank the members of the Employment Forum for completing this thorough review within the short timescale that I set.

On the basis of the evidence that has been presented, I accept the Forum’s recommendation that a youth rate would not provide a ‘quick fix’ to youth unemployment and I have agreed not to propose a youth rate at this time.

Whether a youth rate might be required in the future is likely to depend upon the impact and success of other current measures to get people of all ages into work, including the recently initiated Employment Grants Scheme.

Noting that the provision of training became a significant focus of this youth rate review, I have directed the Forum to review the trainee rate and the conditions that might permit an employer to pay less than the minimum wage. I have proposed that the Forum undertake this review within the context of other ongoing plans to re-model training and apprenticeships in Jersey. I look forward to receiving the outcomes as part of the Forum’s 2012 minimum wage review later this year.