The age group most likely to lose their jobs during coronavirus pandemic REVEALED
The research conducted by the IFS looked at how the coronavirus pandemic has affected different groups of people as the economy has been severely disrupted by lockdown measures. The institute claims that sectors that have been shut down as a result of the lockdown employed almost a third of all workers under the age of 25.
Most of these were women, suggesting that females under 25 may be more affected by job cuts than males in the same age group.
By comparison, just one in eight workers over the age of 25 were employed in these sectors.
As such, employees under the age of 25 are around two and a half times more likely to work in a sector that has now been shut down as other employees, the IFS claims.
This is despite 18- to 25-year-olds making up just under one tenth of the entire UK population as of ONS 2018 statistics.
The research did not include full-time students with part-time jobs.
However, one mitigating factor for some young people is that the majority of them who have been affected by covid-19 related shut-downs now live with parents or people whose earnings are less likely to be affected, the IFS claims.
But the divide is even more stark when it comes to low income workers and high income workers.
Low earners are significantly more likely to have been affected by the lockdown than those more well off; the IFS claims this is “the largest disparity of all”.
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This is because a third of employees “in the bottom tenth of the earnings distribution” work in sectors that have now been shut down, compared with just five percent of earners in the top ten percent of the earnings distribution.
Though again, the IFS adds that “the majority” of low earners live with either parents or people who are more financially stable, which could be a mitigating factor.
However, the New Economics Foundation has said that out of 5.6 million workers that it says are at “high risk of losing their jobs,” over 1.2 million are living in private rented accommodation.
It adds that “many of these” will likely not benefit the government’s jobs and income protection schemes.
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Altogether, around 15 percent of all workers in the UK work in sector that has either mostly or completely been shut down by the Covid-19 lockdown.
This includes non-food retail, the hospitality industry, personal services such as hairdressers, and the arts and leisure services.
And because women are more likely to work in retail and hospitality, they are more likely to have their earnings affected.
Indeed, one in six female employees worked in a sector that has now been shut down before the Covid-19 crisis, compared with one in seven males.
Meanwhile, the Social Market Foundation (SMF) has called for the government to implement a job guarantee as a long-term reaction to unemployment caused by the Covid-19 outbreak.
The think tank said in a report on its website yesterday: “There has been unprecedented increases in unemployment as employers themselves have cut payroll costs in live with plummeting revenues.”
To combat this, the SMF suggested a Universal Jobs Guarantee, which it defined as “a social security policy whereby the state commits to providing stable, decently paid employment to anyone that wants it.”
It also said that those who are part of the scheme have around 20 percent of their working week be dedicated to training and education.
Private sector employers that benefit from the scheme, which the SMF said is essentially “free state-funded labour”, would be obliged to provide training for the participants.
Published at Mon, 11 May 2020 00:04:00 +0000