Commonwealth fund "to create 1,000 graduate jobs"

The leader of Glasgow City Council has unveiled a £10 million scheme to create 1,000 jobs for graduates in the city.

The Commonwealth Graduate Fund will pay employers 50 per cent of the salary of graduates they take on, up to a limit of £10,000 per person, for one year.

Council leader Gordon Matheson announced the project at the 14th State of the City Economic Conference.

To qualify for the scheme, graduates must have attended a council-run school for all or most of their secondary education, or have a permanent or parental home address within the city boundary.

In addition, the jobs they take must be based within Glasgow. Public, private and voluntary organisations can take part in the initiative, but any recruitment must be in addition to hiring for non-subsidised roles.

Employers must also pay a minimum of the Glasgow Living Wage, which currently stands at £7.15 per hour but is set to rise to £7.20 per hour from 1 April 2012.

Finally, jobs offered through the scheme must be for at least 35 hours a week.

"My vision for Glasgow is to create a city of excellence: where young people are encouraged to succeed; where businesses are supported to grow; and where the entire city shares the rewards," Matheson said.

"Graduates account for 32 per cent of our workforce - well above the UK average - and I want those leaving university to believe they can fulfil their dreams in this city."

Stuart Patrick, chief executive of Glasgow Chamber of Commerce, commented: "We warmly welcome this move by the city council. We know the labour market is especially tough for young new entrants at this time at all skill levels.

"We have already seen the positive impact of the two existing Commonwealth Funds on youth unemployment in Glasgow. To include graduates with this new fund recognises the challenges they are also facing securing jobs, helping us retain the talent that will help attract new investment to the city in the future."