Labour pledges to create 55,000 apprenticeships amid hiring slump
A Labour initiative to transition young people from welfare to work is being launched as the UK experiences a significant decline in job vacancies, reports BritPanorama.
Sir Keir Starmer will announce plans to fund 55,000 new apprenticeships by covering the full costs of training in small and medium-sized enterprises. This move comes as a **monthly jobs report** from KPMG and the Recruitment and Employment Confederation reveals a drop in vacancies across all sectors, most notably in the **hospitality sector**.
The Prime Minister is allocating £725 million to support this apprenticeship scheme, aiming to quell dissatisfaction stemming from his recent budget, which has been dubbed the “Benefits Street Budget.” Starmer emphasized that apprenticeships are crucial for the government’s vision, particularly as nearly one million individuals aged 16 to 24 are currently outside of work, education, or training.
However, experts warn that this initiative may face challenges due to **economic constraints**. Firms burdened by rising taxes are reporting fewer employment opportunities, potentially undermining the efficacy of the proposed apprenticeship program.
Lisa Fernihough from KPMG UK stated, “The latest figures confirm the jobs market remains stuck in contraction. A complex business environment and uncertainty around the Budget kept hiring on ice last month.”
UKHospitality chief Kate Nicholls highlighted that the total tax burden has decreased from £3.4 billion to £2.2 billion, calling this reduction “not sustainable.” She argued that relying on small businesses in hospitality to provide economic growth while imposing such tax obligations is unrealistic.
As the UK grapples with these employment challenges, the effectiveness of Labour’s proposals will hinge on addressing the underlying economic factors that are constraining job creation.
This development underscores the complexities of the UK job market, where firms are caught between financial pressures and the need for skilled labour. How the government navigates these challenges will be critical for its ability to foster employment and economic growth in a subdued environment.
