The government is to work with the UK's 20 largest employers to help those who have been made redundant.
Speaking in his pre-budget report, chancellor Alistair Darling has announced he is "determined" to help those jobseekers who were made redundant during the credit crunch to get back into employment.
According to MoneyMarketing, he hopes to speed up the recruitment process and put more of an emphasis on work-related learning.
He also said that although employment levels are near record high, unemployment is still rising and therefore £2.3 billion has been set aside to spend on "employment methods".
The Chartered Institute of Personnel and Development has recently encouraged businesses to consider freezing pay or reducing hours rather than having to make staff redundancies.
It claims firms could find that they lose money in the long run by letting so many people go.