A practical employer guide covering the business case for hiring long-term unemployed people, available government incentives, structured onboarding, retention strategies, and addressing common concerns.
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"Skills will be outdated": Offer refresher training — the cost is typically less than recruiting a fully qualified candidate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