That is according to the Federation of Small Businesses (FSB), which has suggested that employers are probably not going to be persuaded to take on staff because of a "£1,000 ‘Golden Hello’".
The FSB was making its comments in light of a government initiative which offers employers £1,000 for employing someone who has been out of work for six months or more and £1,500 for those companies offering training.
Commenting on the incentive plan, a spokeswoman for the FSB said: "Employers are not likely to be influenced by the £1,000 ‘Golden Hello’. The real winners will be companies who were already taking on staff to fill an existing vacancy.
"This is really a measure to tackle long term employment rather than rising unemployment."
James Purnell, secretary of state for work and pensions, explained that the government was investing £2 billion to help get people back to work.
