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Umbrella Companies – A Solution for Record High Youth Unemployment
15th April 2011
Could umbrella companies be a solution to the UK’s record high youth unemployment?
The ONS (Office of National Statistics) recently released figures to show that youth employment is at an all time high since 1992. People aged between 16-24 including school, college, and university graduates, are struggling more than ever to find employment in the UK. The total figure of young people who are out of work is now the highest number since records began in 1992, standing at 974,000. Educated16-24 year olds are finding it very difficult to get their foot in the door across many industries, but umbrella companies could be one of the solutions for young people with untapped skills. While finding employment with other companies could prove to be difficult for graduates, using umbrella companies to avoid high costs of running a business could be the answer for skilled youths who have a service offering.
Martina Milburn, chief executive at The Prince's Trust, said: "We need to help young people back into work to strengthen the economy, communities and families." (Source: mindfulmoney.co.uk)
Although the future could be looking bleak to some job seekers, bringing light to the national issue could raise enough concern to bring solutions to the problems. One of the many solutions that could encourage entrepreneurship is the growth of umbrella companies. Umbrella companies can offer contractors the perfect self-employment solution without any need to register as a limited company. The benefits of using an umbrella contractor company can help to reduce costs, while also saving time on legal and administrative tasks.
The current youth unemployment figures are a part of the bigger economic picture; total unemployment across all age groups in the UK hit a 17 year high, with a recent drop that could show signs of promise in such a delicate financial time. Together with the recent fall in inflation, there could be few positive signs for young people and businesses. Trade Union Congress general secretary, Brendan Barber said: "The increase in the unemployment rate for young people is of real concern. Youth unemployment is at a record high, with more than a fifth of young people unable to find jobs, the risks for the future are very real." (Source: mindfulmoney.co.uk)
If you are interested in finding out more about how umbrella companies work and what the benefits are to self-employed contractors, contact us today. Use our contact form online and someone will get back to you.
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