One employment organisation believes that businesses are unlikely to be enticed by the government's Golden Hello welfare scheme.
In the opinion of the Federation of Small Businesses (FSB), the £1,000 cash incentive offered to companies which recruit those who have been unemployed for six months or more will not help to lower unemployment figures.
Instead, the FSB claims that "the real winners will be companies who were already taking on staff to fill an existing vacancy".
A spokesperson for the body continued: "The FSB welcomes support for more people in long-term unemployment to set up their own businesses and become self employed."
She believes the economy will not grow unless new enterprises are established.
If companies to take part in the Golden Hello initiative, they will be offered an additional £1,500 if they provide in-work training when employees take up their positions.
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