The FSB has called on the government to create a Graduate Employment Scheme to help tackle graduate unemployment.

A new Graduate Employment Scheme should be created to ensure internships are available in small businesses to help combat graduate unemployment, says the Federation of Small Businesses (FSB).

University leavers are facing a difficult time when looking for employment. The FSB states that the number of graduate placements has been reduced by 28% in large companies.

Small businesses are the main employers (69%) of students straight out of education and into apprenticeship schemes, however the FSB has found that while 20% of small companies are willing to take on people at graduate level, 45% are unaware that they can run internship schemes.

By developing a Graduate Employment Scheme costing £3 million, the FSB believes an extra 5,000 placement positions could be created for graduates in small businesses – potentially saving the government £600 for each graduate not claiming unemployment benefits.

John Wright, FSB’s National Chairman, explained: “Graduate unemployment is set to soar to unprecedented levels this year as businesses struggle to make ends meet and cut back on recruiting university leavers. However, in a graduate internship scheme, graduates can offer key skills to help businesses move forward while at the same time ensuring they are learning new skills and not unemployed at a crucial time in their careers. 
 
“Small businesses are the sector to create and retain jobs and act as a bridge to formal employment. The government must invest in linking up small businesses and graduates now to prevent graduate unemployment spiralling any further.”

Approximately 25% of graduate internships lead to full-time jobs, so a Graduate Employment Scheme would be of tangible benefit to both graduates and employers.

For more information, visit the FSB website: http://www.fsb.org.uk ^[1]