Recent education leavers and young Black workers hardest hit by Covid-19 job shock 14 April 2021 Press release from the Resolution Foundation Recent education leavers and young Black workers hardest hit by Covid-19 job shock Young people have experienced a sharp rise in unemployment during the pandemic – despite widespread furloughing and a rise in studying – with the increase fastest among recent education-leavers and young Black people, according to new Resolution Foundation research published today (Wednesday). Uneven Steps explores the impact of the Covid-19 crisis on unemployment among 16-24 year olds, identifies the groups most affected, and outlines further steps the Government should take to prevent long-term scarring impacts for young people’s careers. More broadly, the report finds that, while the furlough scheme has minimised unemployment increases, young people have borne the brunt of the job losses that have occurred. This is because they disproportionately work in sectors, such as hospitality and leisure, most affected by the crisis. Between April-June and July-September 2020, the unemployment rate among 18-24-year-olds rose from 11.5 per cent to 13.6 per cent – an 18 per cent increase, and the largest quarter-on-quarter rise among this age group since 1992. Young people aged 16-24 also accounted for a 57 per cent share of the fall in employment between November 2019 – January 2020 and November 2020 – January 2021. In particular, the report finds that the rise in youth unemployment is not just about those losing their jobs, but also about young people not finding work in the first place. Those who left education just before or during the crisis – the so-called “class of 2020” – have faced particular difficulties, with unemployment rising fastest among those who recently left education. Having a degree has not protected recent graduates from this effect. Among non-graduates who left education one year ago, unemployment rose from 14 to 18 per cent between 2019 and 2020 (an increase of 28 per cent) – and among graduates, it rose from 10 to 14 per cent (a 40 per cent increase). The Foundation’s analysis also shows that, as well as creating a very generationally uneven unemployment surge, the pandemic has widened pre-existing unemployment gaps between different ethnic groups after decades of progress – with the impact especially marked for those leaving education. Prior to the pandemic, the unemployment rate among young people with a Black background was 25 per cent, compared to 21 per cent for young people from an Asian background, and 10 per cent for young people from a White background. During the crisis, however, the unemployment rate for young Black people overall rose by over a third to 35 per cent, compared to 24 per cent for young people from an Asian background, and 13 per cent for young people from a White background. The Foundation says that more must be done to protect young people from the impact of long-term unemployment by expanding, and extending beyond the end of 2021, the Government’s £2 billion Kickstart youth jobs scheme. Policy makers will also want to ensure that young people from hard-hit ethnic backgrounds have access to the scheme, alongside access to quality education and training options, and, where needed, financial support for full-time study. Kathleen Henehan, Senior Research and Policy Analyst at the Resolution Foundation, said: “The furlough scheme has done a fantastic job of minimising job losses amidst unprecedented shutdowns of our economy. “But young people have still experienced a sharp rise in unemployment during the Covid-19 crisis – with recent education-leavers and young Black people being hardest hit. This pandemic has created a highly generationally unequal unemployment surge, and widened pre-existing gaps between different ethnic groups. “Young people have sacrificed their livelihoods in order to save the lives of others from Covid-19, and putting their careers back on track must be a priority for Government in the months and years ahead.”
