Monday 6th April saw the introduction of many new employment law changes, but one new piece of legislation in particular will greatly affect those currently unemployed.
The "golden hello" recruitment incentive came into effect on Monday 6th. This means that businesses are now able to take advantage of up to £2,500 recruitment and 'on the job' training subsidies if they hire people who've been looking for work for six months or more.
The recruitment subsidy is worth £1,000 and the company can, depending on location, access up to £1,500 worth of in-work training as part of the package announced by Gordon Brown in January 2009. £500 is offered per long-term unemployed worker, with the remaining £500 paid if they remain at work for over six months.
James Purnell, Secretary of State for Work and Pensions, said:
"The impact of the global recession is being felt here at home, and finding a job is not easy. We are investing £2bn to help people get back into work as quickly as possible. This is part of a range of measures to make sure that where it happens unemployment is short and people can quickly find their way back to supporting themselves and their families."
John Denham, Secretary of State for Skills, said:
"It's very important that people struggling the most to find work will get extra support to improve their skills to help them gain employment. That's why we are doing everything we can to boost training opportunities to help people through this tough time and help prepare for the upturn when it comes."
Despite the optimism surrounding the plans when they were announced, opinion has begun to turn against the plans as the recession continues to worsen.
Despite the new DWP measures, employers are unlikely to take on untrained staff at a time when they need everyone to be at the top of their games. CBI Deputy Director-General John Cridland commented:
"It was a laudable aim, but difficult to implement when unemployment is rising so swiftly. Three months on, it is even harder to imagine this working as an incentive to employers who are struggling to survive during a recession."
There is also speculation that the measures will make already insecure staff even more concerned about their futures, as the knowledge that they could be made redundant and replaced, potentially for a profit, could be deeply unsettling to even the most job-secure of employees.
Abigail Morris, Policy Adviser at the British Chambers of Commerce, said:
"This would have been a valid welfare-to-work initiative in better times, but it's not a survival tool for small businesses during a downturn. If the government cannot make the details of this scheme work within three months then it should be scrapped and the focus, and resources, used to help businesses retain staff."

(Courtesy The People Bulletin)