Falkirk Council has agreed to cut nearly £500,000 from its employment and training unit budget over the next four years, with changes that include reducing incentives given to employers for recruitment.
The proposal was agreed by members of Falkirk Council at a meeting of its executive on Tuesday.
Councillors from all parties praised the work done by the ETU, which has 43 members of staff who help around 1200 local people every year overcome barriers to employment.
Read more: Twelve community councils still to be formed after second elections
They focus on young people and the long-term unemployed in particular and the figure includes supporting 400 people who are "furthest from the Labour market".
Members heard that, with a budget gap of £67 million in the next five years cuts would be necessary.
Michael McGuinness, head of growth, planning and climate change, said: "In this difficult financial climate where we have to make some savings, we believe that a wage subsidy for the employers is the most appropriate area to make the savings."
Following the decision, Employer Recruitment Incentives will be cut by £332,610, and commissioned training and support provision programmes by £67,000.
The report details that support will continue for some employers but with a reduced level of funding from the council.
Members heard that funding for ETU is very complex and it works with eight different contracts on 10 different programmes.
Mr McGuinness said it was important to note that the decision would not affect the amount of external funding the unit gets, which has ranged from £1.7 million to £3 million over the past few years.
The report was accepted by all members of the council although the Labour group leader Anne Hannah described the cuts as the "least bad option".
"I've been to the ETU and I really value the work people are doing. We are supporting the recommendations but we do have to recognise there will be an impact and it's really important that there is ongoing monitoring, so we are not disproportionately disadvantaging any groups," she said.
The council leader Cecil Meiklejohn agreed there would be an impact but the service had done its best to minimise that and keep pathways for people to get support.
She also took the opportunity to pay tribute to the work of the ETU staff who, she said, had been "trailblazers".
She said: "We had an employment training unit before others and led the way for others who adopted similar models. We have always had a greater emphasis on employment and training than other local authorities and that's reflected in the levels of staff and indeed the outcomes.
"While we don't want to be reducing the budget, it will continue to be provided in a different way and it is indeed the least worst option right now."
