Youth unemployment could increase to over one million in the coming months, as the Covid-19 recession punishes the ‘Corona class of 2020’ with fewer jobs and lower pay, according to the Resolution Foundation.
As many as 600,000 more 18-24-year-olds could become unemployed over the next year, and that’s on top of the 400,000 plus in this age group who are already out of work.
As companies look to lay off employees and freeze hiring some 800,000 school leavers and university graduates are entering the UK jobs market. Current estimates of a 6% rise in unemployment is twice as large as the increase following the financial crisis.
The report finds that the employment rates of graduates entering the labour market during this crisis are projected to be 13% down. Graduate pay is also predicted to drop 7%.
One suggestion to help is the idea of a job guarantees for young people. Resolution Foundations, Kathleen Henehan, said: “A new maintenance support scheme could help thousands stay in education and build-up their skills, while those entering the labour market for the first time should be supported by a job guarantee offering critical employment experience.”