Latest New Deal statistics released

In late May 1998, the UK Government released the latest statistics on progress under its various "New Deal" programmes for unemployed people.

The "New Deal" for young unemployed people (UK9710175N) was introduced nationally on 6 April 1998, having already been operating since 5 January in 12 "pathfinder" areas. Latest figures released by the Government on 27 May 1998 show that in the first three months of operations in the pathfinder areas, a total of 16,400 individuals aged 18-24 joined the New Deal.

Of this total, just under half (45%) joined on crossing the threshold of six months of unemployment, which triggers entry into the scheme. Just over a third joined on crossing a subsequent six-month threshold; around 10% were from the existing stock of people unemployed for over six months who chose to enter before reaching their next "Restart" interview; and just under 10% were from one of the groups eligible for early entry - the largest single category being people with disabilities.

There were 2,700 people who left the New Deal up to the end of March 1998, leaving 13,800 participating in New Deal at that point. Of these 13,800 participants, the majority (12,600) were in the New Deal "gateway" - a period of four months in which they are helped to find work or are placed on one of the other four options under the scheme (UK9707143F) - and 1,100 participating in one or other of these four options. Just under half of those participating in the options were in subsidised employment, and most of the rest in the full-time education and training option. Additional figures for April, when the scheme was introduced nationally, showed that a further 18,000 people had entered the gateway, with an extra 900 people finding unsubsidised work, and 850 in subsidised jobs.

Only 800 single parents have found work under the New Deal for lone parents. Early results from pilot projects in eight areas, covering 72,000 unemployed lone parents with children of school age, show that the scheme had a success rate of 1%-2% in its first 10 months of operation. Unless the programme produces more striking results, pressure is likely to grow on the Government to introduce an element of compulsion to ensure that unemployed lone parents attend job centre interviews. This is largely the approach taken in the Government's design document - published on 26 May - for the programme for older long-term unemployed people, due to be launched on 29 June.

The Government has been cautious in interpreting these sets of figures and says that it is too early to judge the effectiveness of the schemes. However, commentators argue that the 12 pilot projects for those aged 18-24 have failed to reach the most disadvantaged groups who have most difficulty finding work - people from ethnic minorities, people with disabilities and ex-offenders