Small firms 'need government internship scheme'

Public help should be offered to small businesses who wish to take on graduate trainees, an industry group said.

A new report from the Federation of Small Businesses (FSB) shows that 20 per cent of small firms would happily take on a university leaver - but that overall apprenticeship places have dropped by 28 per cent in the last year due to the recession.

Official figures have also shown unemployment rising to a 14-year high of 2.4 million, as the effects of the downturn continue to filter through to the labour market.

As a response, the FSB said that the government should launch a new project to get 5,000 more interns into small business placements.

John Wright, FSB national chairman, said: "Graduate unemployment is set to soar to unprecedented levels this year as businesses struggle to make ends meet and cut back on recruiting university leavers.

"However, in a graduate internship scheme, graduates can offer key skills to help businesses move forward while at the same time ensuring they are learning new skills and not unemployed at a crucial time in their careers."

Around 69 per cent of current UK apprenticeships are thought to be offered by small businesses.