A recent study shows that the corona crisis is expected to hit young workers harder than their prime age adult counterparts.
Coronavirus has impacted everyone. But with a shrinking economy, it appears young people will take the brunt of this impending recession.
The resolution foundation found one-third of 18-24-year-old employees have lost jobs or been furloughed, compared to one-in-six prime age adults. The number of young people claiming universal credit has increased by 250,000 since March.
It is estimated that in the coming months there will be around 2 million young people who will be unemployed or not in further education or training, commonly known as NEETs.
Laura Jane Rawlings, Founder and CEO of Youth Employment UK (YEUK), said that: “it is going to be worse than the 2008 crisis. In 2008 we had 1 million NEETs from the financial recession, COVID isn’t just a health crisis it is an economic one.”
Back in April there were already 8 unemployed people for every 1 job. Rawlings added: “Young people most often start their careers in hospitality, retail or they tend to work for young businesses. They are 2.5x more likely to work in sectors at risk. Where do they go if there are no other jobs? Not only will more young people lose their jobs, but there won’t be as much opportunity for young people to cut their teeth. It is really going to be tough there is no doubt.”
Twenty-four-year-old Niahm, from Manchester, knows this better than anyone else. Like many others, Niahm was made redundant from her first graduate position as Events Co-ordinator at Crystal Palace FC. She said: “I’ve found it hard as I’ve had to move out of London and back home to Manchester, I feel as if my life has completely gone and I’m having to start again.”
She added: “I believe I was made redundant as my role would have been seen as the least important and the easiest to replace in the future. I think if I was older and had been at the company longer it would have been different.”
In response to this impending crisis the government have unveiled a £2 billion pound fund to create six-month placements for unemployed 16-24-year olds. The Kickstart scheme will cover 100% of minimum wage for 25 hours per week. But under this scheme eighteen-year olds could be left being paid just £161 a week. Not even enough to cover rent in most areas.
Jess Amy Dixon, a freelance writer who covers youth employability issues for YEUK, points out the limitations of this scheme. She said: “I think it’s a start, but nowhere near enough. It’s very short-sighted. Six months is great but then what? I’m sure it will help plenty of young people into work and be a stepping stone, but I hope the government will realise that the effects of this crisis will be felt for years and plan accordingly.”
A recent study shows that the corona crisis is expected to hit young workers harder than their prime age adult counterparts.
Coronavirus has impacted everyone. But with a shrinking economy, it appears young people will take the brunt of this impending recession.
The resolution foundation found one-third of 18-24-year-old employees have lost jobs or been furloughed, compared to one-in-six prime-age adults. The number of young people claiming universal credit has increased by 250,000 since March.
It is estimated that in the coming months there will be around 2 million young people who will be unemployed or not in further education or training, commonly known as NEETs.
Laura Jane Rawlings, Founder and CEO of Youth Employment UK (YEUK), said that: “it is going to be worse than the 2008 crisis. In 2008 we had 1 million NEETs from the financial recession, COVID isn’t just a health crisis it is an economic one.”
Back in April there were already 8 unemployed people for every 1 job. Rawlings added: “Young people most often start their careers in hospitality, retail or they tend to work for young businesses. They are 2.5x more likely to work in sectors at risk. Where do they go if there are no other jobs? Not only will more young people lose their jobs, but there won’t be as much opportunity for young people to cut their teeth. It is really going to be tough there is no doubt.”
Twenty-four-year-old Niahm, from Manchester, knows this better than anyone else. Like many others, Niahm was made redundant from her first graduate position as events co-ordinator at Crystal Palace FC.
She said: “I’ve found it hard as I’ve had to move out of London and back home to Manchester, I feel as if my life has completely gone and I’m having to start again.
“I believe I was made redundant as my role would have been seen as the least important and the easiest to replace in the future. I think if I was older and had been at the company longer it would have been different.”
In response to this impending crisis the government have unveiled a £2 billion pound fund to create six-month placements for unemployed 16-24-year olds.
The Kickstart scheme will cover 100% of the minimum wage for 25 hours per week.
But under this scheme 18-year-olds could be left being paid just £161 a week. Not even enough to cover rent in most areas.
Jess Amy Dixon, a freelance writer who covers youth employability issues for YEUK, points out the limitations of this scheme.
She said: “I think it’s a start, but nowhere near enough. It’s very short-sighted. Six months is great but then what? I’m sure it will help plenty of young people into work and be a stepping stone, but I hope the government will realise that the effects of this crisis will be felt for years and plan accordingly.”
