LONDON, July 7 (Reuters) - British finance minister Rishi
Sunak will on Wednesday announce a new scheme to stave off youth
unemployment as he attempts to revitalise the economy following
its COVID lockdown.
The 2 billion pound ($2.5 billion) Kickstart Scheme will
enable employers to hire unemployed young people aged 16-24,
using government funds to pay them the national minimum wage for
25 hours a week.
"Young people bear the brunt of most economic crises, but
they are at particular risk this time because they work in the
sectors disproportionately hit by the pandemic," Sunak said in a
statement.
"We also know that youth unemployment has a long-term impact
on jobs and wages and we don't want to see that happen to this
generation."
The Resolution Foundation estimated the programme could help
up to 300,000 young people into work.
Sunak will also announce a 111 million pound plan to boost
traineeships when he delivers his update to parliament on
measures to boost the economy.
Britain's economy looks set to shrink by more than 10% this
year, the International Monetary Fund predicted in June, worse
than the United States and Germany, although a less severe
contraction than in some other European countries.
Data last month showed the number of people on British
employers' payrolls fell by more than 600,000 in April and May
as the coronavirus lockdown hit the labour market, and vacancies
plunged by the most on record.
($1 = 0.7964 pounds)
(Reporting by Andy Bruce, Editing by Paul Sandle)