Work Foundation proposes paying local leaders to create entry-level jobs for young Neets
Work Foundation researchers say a Community Jobs Fund could create up to 54,000 paid jobs for young people in the UK's weakest labour markets. They argue the government's Youth Guarantee is not sufficient to address the shortage of entry-level jobs in struggling areas.
The Board Room · Leadership desk
Three projections by Work Foundation researchers: a 33% cut in youth unemployment in the 12 pilot local authorities; average youth unemployment across the 80 programme areas falling from 17% to around 12%; and a national cut in the number of Neet young people of up to 5%.
| Figure | Value | Note | Claim |
|---|---|---|---|
| Projected cut in youth unemployment, pilot areas | 33% | 7 | |
| Projected average youth unemployment, 80 areas, around | 12% | down from 17% | 21 |
| National Neet cut, up to | 5% | 22 |
What happened
- Local leaders would receive funding to create jobs lasting 12 to 36 months, for up to 25 hours a week at no less than the national minimum wage.
- In north-east England there are more than six Neet young people aged 16 to 24 for every starter vacancy, against a national average of three, the Work Foundation said.
- Researchers propose piloting the fund in 12 local authorities across the North East, Tees Valley and South Yorkshire, with up to 11,000 jobs and a 33% cut in youth unemployment there.
- The wider programme, covering 80 local authority areas, would need net investment of up to £545m a year, with some costs offset by lower welfare spending and higher tax receipts.
Why it matters
- What it costs cost Dividing the £545m net ceiling by the 54,000-job ceiling gives about £10,100 per post a year, if both limits fall in the same year, and the public purse carries it.
- Who has to decide decision Funding the 12-authority pilot first puts about 20% of the jobs into 15% of the areas, so a later decision to scale would rest on a denser test than the full programme.
- What it limits constraint The researchers' own estimate caps the national effect at a 5% cut in the Neet count, so the fund is a supplement to the Youth Guarantee.
The case against waiting is a case about timing. Alice Martin, head of research at the Work Foundation and a report author, said: "Rather than waiting for the private sector to reverse decades of decline, the fund would give communities the power to create jobs that meet local needs today" [10]. The report's evidence for the shortage is a fall in entry-level hiring: separate Work Foundation research published in June found that average weekly starter vacancies fell 49% between 2016-17 and 2025-26 [6].
The trade-off is speed against permanence. Local leaders could hire quickly into work such as upgrading high streets and other public spaces, backing libraries and community centres, and filling gaps in care and youth services [4]. Because the posts are time-limited, a decision to pilot sets up a gap of at least a year before outcomes for participants can be seen [18].
At the full 80-area scale, the researchers expect average youth unemployment across those areas to fall from 17% to around 12% [21], a drop of about five percentage points [23]. The starting points differ sharply by region. North-east England has the highest regional rate of young people not in education, employment or training (Neet), at 17.5%, and the South West the lowest, at 9.3% [9], a gap of 8.2 percentage points [17]. In our view that spread is the better argument for concentrating money in a few places.
Ben Harrison, director of the Work Foundation, called the Youth Guarantee an important step but said places short of secure jobs and chances to progress needed more action [12]. "Young people in faltering local economies often face intense competition for too few jobs, and the prospect of entering insecure, poorly paid work with little scope to progress," he said [11].
The design is borrowed. Among the European models behind the proposals is France's Territoires Zéro Chômeur de Longue Durée, built on the principle that nobody is "unemployable" provided the work fits a person's skills and capacities and there is useful work going undone in their community [13]. The Work Foundation also cited Austria's Marienthal Job Guarantee [14]. The proposals aim to build on the challenges identified in Alan Milburn's interim report [15]. Personnel Today's account does not include a government response, or the gross cost and offsets behind the net figure.
What to watch
- Whether the government funds a pilot in the North East, Tees Valley and South Yorkshire mayoral combined authorities.
- Publication of the gross cost and the welfare and tax offsets behind the £545m net ceiling.
- Any follow-up Work Foundation vacancy data after its June finding that starter vacancies fell 49%.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence35
- Adoption
- Not scored
- Hype gap+30
- Incentives
- Not scored
- Confidence40
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
A proposed Community Jobs Fund could create up to 54,000 paid jobs for young people in areas with the weakest labour markets, according to new research from the Work Foundation at Lancaster University.
- [2]
The Work Foundation argues that the government's Youth Guarantee is not sufficient to fully address a shortage of entry-level jobs in struggling local economies, and calls on government to work with mayors and local authorities to establish the fund.
- [3]
Under the proposed scheme, local leaders would receive funding to create socially valuable jobs lasting between 12 and 36 months, offering up to 25 hours of work a week at no less than the national minimum wage.
- [4]
Roles could include improving public spaces and high streets, supporting libraries and community centres, and addressing unmet needs in care and youth services.
- [5]
In north-east England there are more than six young people aged 16 to 24 who are Neet for every starter job vacancy, compared with a national average of three, according to the Work Foundation.
- [6]
Separate Work Foundation research published in June found that average weekly starter vacancies fell by 49% between 2016-17 and 2025-26.
- [7]
Researchers propose initially piloting the fund across 12 local authorities in the North East, Tees Valley and South Yorkshire mayoral combined authorities; the pilot could create up to 11,000 jobs and reduce youth unemployment in participating areas by 33%, with unemployment potentially halving in North and South Tyneside.
- [8]
The expanded programme would require a net investment of up to £545m a year, according to the report, with some costs offset by lower welfare spending and increased tax receipts.
- [9]
By region, north-east England has the highest overall regional rate of young people not in education, employment or training (Neet) at 17.5%, followed by the East Midlands (16.9%) and Yorkshire and Humber (16.1%); the South West has the lowest rate at 9.3%.
- [10]
Alice Martin, head of research at the Work Foundation and a report author, said: "Rather than waiting for the private sector to reverse decades of decline, the fund would give communities the power to create jobs that meet local needs today".
- [11]
Ben Harrison, director of the Work Foundation, said: "Young people in faltering local economies often face intense competition for too few jobs, and the prospect of entering insecure, poorly paid work with little scope to progress,".
- [12]
Ben Harrison said the Youth Guarantee was an important step but additional action was needed in areas where secure employment and progression opportunities were scarce.
- [13]
The proposals draw on European initiatives, including France's Territoires Zéro Chômeur de Longue Durée, which operates under the principles that nobody is "unemployable" if work is adapted to their skills and capacities and useful, unmet work exists in communities.
- [14]
Austria's Marienthal Job Guarantee was also cited by the Work Foundation.
- [15]
The proposals aim to build on the challenges identified in Alan Milburn's interim report and support the government's ambition to deliver economic growth and employment opportunities across the country.
- [16]
Dividing the £545m net annual ceiling by the 54,000-job ceiling gives about £10,100 per post a year, if both ceilings apply to the same year.
- [17]
The gap between the highest regional Neet rate (north-east England) and the lowest (South West) is 8.2 percentage points.
- [18]
Because posts last a minimum of 12 months, outcomes for participants after their posts end can be observed no sooner than about a year after the first hires.
- [19]
The 12-authority pilot covers 15% of the 80 local authority areas in the wider programme.
- [20]
The pilot's up to 11,000 jobs are about 20% of the 54,000-job ceiling, from 15% of the areas.
- [21]
A wider programme covering 80 local authority areas could reach 54,000 young people, reducing average youth unemployment across those areas from 17% to around 12%.
- [22]
The researchers estimate that the scheme could reduce the number of Neet young people nationally by up to 5%, reversing recent increases to 2024 levels.
- [23]
The projected fall in average youth unemployment across the 80 areas is about five percentage points.
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Sources
1 independent publisher whose own reporting we read for this story.
- personneltoday.com‘Give communities the power to create jobs’ urge academics
1 article · October 16, 2026
Topics and entities
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Topics
- Youth unemploymentFollow
- Regional economic inequalityFollow
- Labour market policyFollow
Entities
- Marienthal Job GuaranteeFollow
- Work FoundationFollow
- Territoires Zéro Chômeur de Longue DuréeFollow
- Alan MilburnFollow
- Lancaster UniversityFollow
- Youth GuaranteeFollow