I have seen the references to employers' attitudes to recruiting long term unemployed people, as quoted in the report in question.
The conclusion drawn was based on the comments of the chief or senior executives of 15 large-scale employers. It does not follow that they would be representative of employers generally or of the owners of small and medium-sized business in particular.
As pointed out in the report the reality is that, with such an extensive labour surplus, employers may be reluctant to contemplate recruiting people who have been out of work for a long time when there is a ready supply of young and, perhaps, better educated school leavers available locally to select from.