A new study that documented the growing divisions in the workplace since March when the novel coronavirus pandemic hit the United Kingdom has found that younger people in the country are more than twice as likely to lose their jobs compared to their older counterparts.
In the study, academics at the London School of Economics found that the proportion of people to lose their job aged 16 to 25 years was 11.1 per cent compare to those aged 26 and over accounting for just 4.6 per cent in the past two months in the country.
A fall in their earnings was also experienced by the majority of young people (58 per cent) compared to 42 per cent for the rest of the working population.
The LSE study also found that it was more likely that women, self-employed people and those who grew up in a poor family would be experiencing unemployment and wage cuts, which assumes importance in the wake of recent economic figures that show a slowdown of economic growth in the UK because of the second wave of the pandemic which is resulting in lockdowns.
The rising number of cases across the country and the closure of his furlough scheme and with the fourth major economic update in as many months was being responded to by him, Rishi Sunak said last week.
The new job support scheme, which is the furlough scheme’s successor, was upgraded by him and this new scheme is now apparently more beneficial for employers who would be forced to close shops in local lockdowns. While welcomingthe move, business leaders and thinktanks also warned that hundreds of thousands of job losses could still be triggered by the impact of the lockdowns.
The British chancellor had failed to help many self-employed workers, particularly those who were young and working in the gig economy, said the Resolution Foundation in a report that is slated to be published later this week and one that examines the impact of Treasury support schemes.
£1.3bn was handed to workers who experienced no loss of income in a scheme to help self-employed people during the pandemic, the thinktank said, while nothing was given to 500,000 people who lost their jobs which included many young people.
There was an increase in the possibility of the 1980s-style long-term unemployment, warned author of the LSE report, and added that this was true especially for those who are currently just entering the job market.
The need for a jobs guarantee targeted at people below 26 years and one that could deliver the population a basic wage and on-the-job training had increased because of the pandemic, said the report which is called Generation Covid: Emerging Work and Education Inequalities.
“It is well – known that young workers entering the labour market in recessions suffer a range of consequences, impacting on earnings and jobs for 10 to 15 years, and affecting other outcomes including general health and the likelihood of entering a life of crime,” said the authors of the report.
(Adapted from TheGuardian.com)