News Release

Embargo: not for publication or broadcast before 00.01 am Wednesday 17 July 2002


Government employment programme for young people ‘is good for their health’

Young people are at risk of social exclusion if they become trapped in a downward spiral of worsening health and unemployment. Health problems make it more difficult to find jobs, and, in turn, unemployment makes it more difficult to stay healthy.

In one of the first ever British assessments of the health effects of a labour market policy, the Policy Studies Institute today publishes ‘Health Impacts of New Deal for Young People’ by Jane Lakey and Dorothe Bonjour. This report shows that the employment programme set up by this government, New Deal for Young People, may have health benefits for the young people involved.

It is generally assumed that young people have few health problems, yet around a quarter of 16 to 24- year-olds in England suffer from some kind of long-term illness. Unemployed young people tend to have worse health than young people in employment or education, but little research exists on how labour market programmes, like New Deal for Young People, designed to stimulate employment, might also benefit health.

Drawing on national surveys of over 6000 participants, this new report considers both the direct and indirect impacts of the programme on participants’ health.

New Deal for Young People is a compulsory scheme for all 18-24-year-olds who have been unemployed for more than six months. It consists of an intensive initial Gateway period, followed by one of four options: subsidised employment, full-time education or training, work in the voluntary sector or work with the Environment Task Force. PSI’s research shows that each of the options has benefits for general health, with the education option tending to perform relatively well in terms of mental health.

Key findings include:

·        Generally, participants on the New Deal Options appeared to have improved general health compared to participants who remained on Gateway.

·        Participants on the Employment Option were the most confident about their ability to find a job.

·        Participants on the Employment Option were also the most positive about their current situation.

·        The mental health of participants on the Education Option tended to be better than participants on other Options.

One of the report’s authors, Dorothe Bonjour, says:

The results of our research suggest that labour market programmes can be good for participants’ health, which is good news for employers who are looking for healthy, confident young people to join their workforces. Some of the health benefits appeared to come from accelerated progression into employment, but it seems likely that the activities that people were engaged in while participating in the options themselves also made a difference to their health, both physical and psychological.

However, more research is needed to establish the precise extent of health impacts generated by different labour market programmes.

Contact: Nelleke van Helfteren on 020 7468 0468

Notes for editors

  1. Health Impacts of New Deal for Young People by Jane Lakey and Dorothe Bonjour is published by PSI on 18 July, priced £15.00. Copies are available from Central Books Ltd on 020 8986 5488. Review copies are available from the PSI Communications Team on 020 7468 0468.
  1. The research was commissioned by the Department of Health using data from the New Deal Evaluation Database constructed by the Employment Service, and from surveys jointly designed by BMRB International, the Employment Service, the Department of Health and the Policy Studies Institute.
  1. Since the New Deal is compulsory for 18-24 year olds who have been claiming unemployment benefits for more than six months. It was not possible to compare the health outcomes of participants with those of similar individuals who did not take part.
  1. PSI is a registered charity and has no association with any political party, pressure group or commercial interest.