Billed by employment minister Chris Grayling as "the most ambitious back-to-work programme this country has ever seen", it is hoped it will bring to an end a persistent problem that has defeated previous administrations.
But despite Government optimism, the picture looks different from the vantage point of employers. In the UK, 2.4 million people are out of work, yet some businesses are finding it hard to recruit staff.
Carmen Watson, MD of Pertemps Recruitment Partnership, said: "Businesses are recruiting again, which should offer great encouragement to the labour market. However, there is a worrying trend that, although companies are hiring, they are struggling to find the right calibre of staff.
"Hiring the right staff is vital to any organisation and failure to do this can cost a company dearly. My advice to companies who are looking to hire is to recruit staff who share your company's values and culture."
Chancellor George Osborne has highlighted the skills gap as a real danger. In the recent Budget, he said the UK was falling behind other developed countries in terms of having a skilled and flexible workforce, something he said could potentially undermine future economic growth.
As a result, the Government has found extra funding for a further 40,000 apprenticeships for young people. [link here]
Apprenticeships should prove an attractive solution to both employers and prospective employees. With fees increasing to up to £9,000, the option of university has become a less attractive option to many young people.
Watson added: "The skills agenda raises much concern and there are a number of vital areas we need to look at. A critical area appears to be 16-24-year-olds, where we have seen an alarmingly high unemployment rate so far this year. We are clearly not offering this age group enough training and support and, in my opinion, many are not being offered training at all. This is a question that needs to be addressed as a matter of urgency and we need to be asking companies to seriously look at how we can support an age group that is failing to get jobs."
