Firms urged to put job creation ahead of net-zero goals for public bids

Companies vying for government contracts are being instr…

Companies vying for government contracts are being instructed to weigh the creation of new positions more heavily than environmental benchmarks, according to new guidance issued to suppliers. The move signals a shift in procurement priorities as the administration seeks to address rising unemployment among young people.

The updated criteria, which take effect immediately for all major tenders, require bidders to demonstrate how their proposals will generate entry-level roles and apprenticeships. Firms that can show a clear plan for hiring will receive preferential scoring, even if their sustainability plans are less ambitious than those of competitors.

Officials say the decision reflects an urgent need to counter a sharp uptick in joblessness among those aged 16 to 24, a demographic hit hard by recent economic turbulence. The unemployment rate for this group has climbed to its highest level in over a decade, prompting calls for more immediate action from the private sector.

While green objectives remain part of the evaluation

While green objectives remain part of the evaluation process, they are now secondary to employment outcomes in scoring rubrics. The government insists this does not mean abandoning climate commitments, but rather reordering priorities to address a more pressing social crisis. Suppliers have been advised to revise their proposals accordingly before the next bidding round.

Industry observers note that the change could benefit construction, logistics, and retail firms, which typically offer larger workforces and more junior positions. Conversely, technology companies with smaller headcounts or those relying on automation may face stiffer competition for public sector deals.

The new guidance has drawn mixed reactions, with some business groups welcoming the focus on job creation and others warning that it could undermine long-term sustainability goals. However, ministers have stressed that flexibility remains: companies can still win contracts without meeting all employment targets if they offer exceptional value elsewhere.

For many smaller firms, the shift presents an

For many smaller firms, the shift presents an opportunity to compete on workforce growth rather than costly green investments. One SME owner described it as a "leveling of the playing field," noting that hiring local staff often proves more feasible than financing carbon-neutral initiatives.

The government plans to review the policy’s impact after twelve months, with adjustments expected based on employment data and feedback from suppliers. Until then, job creation will stand as the decisive factor in awarding public contracts.