Employer Guide to Hiring the Long-Term Unemployed: Benefits, Incentives, and Best Practices
Why Hire Long-Term Unemployed People?
The Business Case
- Untapped talent pool: With labour shortages across sectors, the long-term unemployed represent a significant source of available workers
- Loyalty and retention: Employees who have struggled to find work often demonstrate exceptional gratitude and commitment (CIPD, 2022)
- Government incentives: Significant financial support is available (see below)
- Diversity of perspective: People who have experienced hardship bring resilience and empathy
- Social impact: Reducing long-term unemployment benefits the broader economy and community
Addressing Employer Concerns
- "Skills will be outdated": Offer refresher training — the cost is typically less than recruiting a fully qualified candidate
- "They'll be unreliable": Evidence shows that with proper onboarding support, attendance rates are comparable to other hires
- "Something must be wrong with them": Long-term unemployment is usually caused by structural factors (disability, caring responsibilities, economic conditions), not personal failings
Government Incentives
| Country | Programme | What It Provides |
|---|---|---|
| US | WOTC (Long-Term Unemployed) | Tax credit of 40% of first $6,000 wages ($2,400 max) for hiring someone unemployed 27+ weeks |
| UK | Restart Scheme | Intensive employment support for referrals from Jobcentre Plus |
| UK | Sector-Based Work Academies | Pre-employment training + work placement + guaranteed interview |
| Germany | Eingliederungszuschuss | Wage subsidy up to 70% for up to 24 months |
| Germany | Teilhabechancengesetz | 100% wage subsidy for first 2 years for very long-term unemployed (5+ years) |
| Australia | Workforce Australia wage subsidy | Up to $10,000 for hiring eligible long-term job seekers |
| Netherlands | Loonkostensubsidie | Wage cost subsidy bridging productivity gap |
Structured Onboarding
Long-term unemployed hires benefit from more structured onboarding than typical new employees:
- Pre-employment: Workplace visit, meet the team, clear information about first day logistics
- Week 1: Orientation, buddy assignment, reduced workload, daily check-ins
- Weeks 2-4: Gradual increase in responsibilities, weekly check-ins, feedback loops
- Month 2-3: Full role expectations with ongoing support available
- Month 3-6: Formal review, discussion of development opportunities
Key Principles
- Assign a workplace buddy (not a manager) for informal support
- Provide written expectations — do not rely on "you'll pick it up"
- Be patient with confidence gaps — skills may be intact but self-belief may need rebuilding
- Celebrate small wins early to build momentum
Retention Strategies
- Regular check-ins beyond the probation period
- Access to Employee Assistance Programmes
- Training and development opportunities — signal that you are investing in their future
- Flexible working where possible to accommodate ongoing challenges
- Monitor and address any workplace bullying or stigma
Resources
- CIPD Inclusive Recruitment Guide: [cipd.org](https://www.cipd.org)
- Timewise (UK, flexible hiring): [timewise.co.uk](https://www.timewise.co.uk)
- US DOL Long-Term Unemployment Resources: [dol.gov](https://www.dol.gov)
- Burning Glass Institute (labour market data): [burningglassinstitute.org](https://www.burningglassinstitute.org)