The Covid job crisis hits young people and ethnic minorities the hardest: more than a fifth of BAME employees and 19% of 18 to 24 year olds on leave are now unemployed, according to a report
- One in five 18 to 24 year olds has already become unemployed
- The Resolution Foundation says it is the worst youth employment crisis since the early 1980s
- The unemployment rate among 18 to 24 year olds has almost doubled to 20 percent since the beginning of the crisis
Young people and BAME workers are bearing the brunt of the pandemic's employment crisis, a report warns today.
Nineteen percent of 18- to 24-year-olds who were on leave are now unemployed, up to a fifth among ethnic minorities.
The Resolution Foundation's analysis shows the worst employment prospects for young people since the early 1980s.
Although the government has poured billions into the job retention program to avert mass layoffs, the report warns that the bloody economic shocks of the pandemic are now beginning to manifest.
The overall unemployment rate is estimated to have increased from 4.5 percent in the summer to 7 percent last month.
According to a report by the Resolution Foundation, unemployment among young people is rising fastest
The overall unemployment rate is estimated to have increased from 4.5 percent in the summer to 7 percent last month
A report warns that youth unemployment will hit its highest level in four decades after the vacation program ends this weekend
The Jobs Jobs Jobs report looked at the demographics that were particularly hard hit by the lockdown.
The unemployment rate among 18 to 24 year olds has almost doubled to 20 percent since the beginning of the crisis.
The authors go into the numbers and come to the conclusion that young workers not only have vacation much more often, but also lose their jobs much more often later.
It is also more likely that young workers have made a pay cut. 15 percent say they earn less than they did before the pandemic, although this is only slightly less in other age groups.
The report also highlighted that 22 percent of BAME workers on leave are now unemployed.
Kathleen Henehan, senior research and policy analyst at the Resolution Foundation, said, “The first eight months of the Covid crisis were marked by an all-powerful economic shock and unprecedented support that cushioned the livelihood impact.
"But the true nature of the UK employment crisis is beginning to show. Around one in five young people and more than one in five BAME workers has fallen straight from vacation into unemployment."
“What is worrying is that since then, fewer than half of those who lost their jobs during the pandemic have found work. This suggests that the UK employment crisis will stay with us much longer, even if the public health crisis subsides in a few months. "
The hotel industry was the hardest hit sector of the employment economy. Pubs and restaurants were still subject to curfews and stricter restrictions at levels 2 and 3.
Geographical differences were also revealed and London suffered from the greatest disruption of its labor market.
Geographical differences were also revealed and London suffered from the greatest disruption in its labor market
An analysis by the Resolution Foundation found that one in five 18- to 24-year-olds who took vacation has since become unemployed
The job retention program, which has cost more than £ 41 billion to date, has been credited with helping prevent a workplace bloodbath since it was launched in the spring.
However, the official figures released earlier this month showed the biggest summer layoff surge in a quarter of a century.
They showed that the number of unemployed rose over 1.5 million – by 138,000 between June and August.
This was the largest increase since the summer of 2009 in the depths of the last financial crisis.
The companies laid off 227,000 employees between June and the end of August, more than twice as many as in the previous quarter.
This was the largest increase in layoffs since comparable records began in 1995.
The decisive unemployment rate rose from 4.1 percent to 4.5 percent, the highest in three years.
However, the Resolution Foundation believes that official figures have masked the extent of the unemployment crisis and that the actual number of unemployed is expected to hit 2.5 million last month.