BOSSES should be given a cash incentive to recruit long-term unemployed young Scots for work experience placements, a report suggests.

With the Scottish Government having warned the coronavirus crisis could see the unemployment rate rise from its current 4.6% to 14% by the end of 2020, ministers are also being urged to look at what can be done to minimise “failures of otherwise successful businesses”.

The report, produced by a sub-group of the existing Enterprise and Skills Strategic Board, recommends the Government “must look at fiscal options directly or via the banks”.

Board chair Nora Senior said the group had “worked at pace to develop recommendations that we believe can be implemented quickly – not just to help keep people in employment, but also to support those facing redundancy or those who have already lost their job”.

Senior, an award-winning businesswoman who has served as president of the British Chambers of Commerce, added: “The report highlights the need for a society-wide, civic response.

“The Scottish Government, its agencies, partners such as local authorities and crucially employers in all sectors should come together immediately to contribute to the effort required to mitigate the impact of the pandemic.”

The sub-group also includes Scottish Chambers of Commerce chief executive Liz Cameron, Frank Mitchell of Skills Development Scotland, and former Scottish Trades Union Congress general-secretary Grahame Smith.

The Scottish Government had asked the group to look at what practical measures can be put in place quickly.

The report recommends short placement schemes providing work experience for under-25s who have been out of work for six months, with an employer subsidy introduced.

It also called for direct grants for training or retraining workers in sectors hit the hardest by Covid-19 such as hospitality and tourism.