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The Jobs Fund (formally STES) Invest NI - Boosting Business Steps to Work (StW) - DEL Employer Subsidy - DEL 29th November 2011 Slide 2 Outline Economic Context Rationale for the introduction of The Jobs Fund The Jobs Fund (Invest NI) Steps to Work (DEL) Employer Subsidy (DEL) Boosting Business Slide 3 Page 3 Sources of competitiveness Total output (or value added) (NI GVA = 28.3bn) Labour productivity (GVA per filled job= 85.3% of UK) Employment rate (67.5% of working age) Business growth FDI activitySkills R&D, Innovation and creativity Employment creation Infrastructure Framework for Regional Competitiveness Standard of living GVA per head 15,795 or 79.1% of UK Slide 4 StatisticQuarterly changeAnnual change Employment799,000-0.5%+2.8% Employment rate67.5%-0.5pp+1.3pp Economic inactivity546,000+1.3%-2.5% Economic inactivity rate27.1%+0.6pp-1.7pp Unemployment level (ILO)63,000+1.6%+6.8% Unemployment rate (ILO)7.3%-+0.3pp Claimant unemployment (000s) - October 60,700+0.2% on month+4.3% Claimant unemployment (rate)6.9%-+0.3pp Vacancies6,205-27.6%-8.9% DETI Labour Market Report (Sept 2011) Slide 5 Draft Strategic Framework Slide 6 The Challenges Avoid the unemployed becoming permanently detached from the labour market Stimulate job creation in the short term - Job - Better Job - Career Develop a range of measures covering length and breadth of the economy Aligned with other Executive Department strategies (OFMDFM, DEL, DSD) Aligned with existing Invest NI strategies and objectives Need to implement measures quickly to maximise impact Slide 7 Priority 1: Growing a Sustainable Economy and Investing in the Future The primary purpose of this Priority is to achieve long term economic growth by improving competitiveness and building a larger and more export-driven private sector. To do this we must rebuild the labour market in the wake of the global economic downturn and rebalance the economy to improve the wealth and living standards of everyone. This means: More jobs More people in work Slide 8 The Jobs Fund Measures 2011-2015 Measure Promoted Jobs 2011-15 Created Jobs 2011-14 1.Grant for Business Starts in Neighbourhood Renewal Areas (NR) 1,500 2.Increased Support for Social Enterprise340 3.Grant for Business Start to Young People Not in employment, education or training (NEETS) 280 4. Business Growth Programme (Export Starts, Global Starts & Existing Businesses) 150 5.Jobs Fund SFA employment grant support across a range of sectors including Contact Centres, Food Processing and Knowledge Process Outsourcing 3,1001,730 6. Employer Subsidy (DEL) Total Budget 18.83m6,3004,000 Slide 9 The Jobs Fund Measures Grant for Business Start in Neighbourhood Renewal Areas (NRA) -1K grant -Grant for Business Start to Young People Not in Employment, Education or Training (NEET) - 1.5K grant Increased support for Social Enterprise - Area Based Approach/Franchising/LTU Slide 10 Flexible Joined Up Approach From Government Steps to Work The Jobs Fund Employment Grant Employer Subsidy Slide 11 Many business owners face a range of challenges: Banks are attempting to tidy up their credit portfolios. Many are experiencing a significant decline in the demand for their products and services and the general sluggishness in economic activity is having an adverse impact on supply chains across a number of sectors. There is an upward trend in insolvencies and bankruptcies with the majority coming so late in the cycle that any sort of restructuring or rescue is very difficult. As a result, many businesses with investment plans lack the confidence to implement them. This has impacted on Invest NIs Work in Progress and budget drawdown. Business Issues Slide 12 1)Invest NI has reviewed existing products and services to see if, and how, we can make them either available to a wider business base, or make them easier for businesses to benefit from. 2)We have considered what new products or services we may be able to introduce to help business. 3)Actions which can be quickly implemented have been pulled together under a number of themes: Boosting Business Through Jobs Boosting Business Through Exporting Boosting Business Through Research and Development Boosting Business Through New Technology Boosting Business Through Skills Media Campaign launched 14 th November TV, Radio, Press, SMS, Online, Outdoor Boosting Business - Invest NI response to ongoing downturn Slide 13 The campaign is branded Boosting Business with individual treatments for each theme The overall aims of the campaign are to: launch an initiative which communicates how Invest NI is providing a proactive response to the current economic challenges and businesses increase awareness of the range of support available from Invest NI, generate higher levels of referrals and Work in Progress, and enable Invest NI budget to be utilised to the maximum extent in support of business in NI. Campaign Overview Slide 14 Campaign formally launched by FM at CBI lunch 29th Sept TV, radio, outdoor advertising, direct mail, digital channels, social media, supported by PR, stakeholder and internal communications activities: Radio, TV, online and outdoor advertising commenced 14th November. Introduction of SMS text facility to commence 28th November All relevant information will be held at www.boostingbusinessni.com, which will direct to visitors to relevant pages on www.investni.com and/or www.nibusinessinfo.co.uk.www.investni.comwww.nibusinessinfo.co.uk The primary call to action will be to contact Invest NI via a)Completion of an online enquiry form on a dedicated campaign microsite. Alternatively, businesses can visit an Invest NI office, b)Mobile response by texting BOOST to 78886 SMS, or c)Call 0800 181 4422 Campaign Strategy and Key Dates Slide 15 Generic Outdoor Ad Slide 16 Generic Press Ad