Coronavirus: Young people ‘most likely to lose work’ in lockdown

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Young people are most likely to have lost work or seen their income drop because of the coronavirus pandemic, a report suggests.

More than one in three 18 to 24-year-olds is earning less than before the outbreak, research by the Resolution Foundation claims.

It said younger workers risk their pay being affected for years, while older staff may end up involuntarily retired.

Young people tend to be hardest hit by economic slumps.
Around a quarter of 18 to 24-year-olds have been furloughed – meaning they do not work but their firms keep them on their books and the government covers 80% of their wages.

A further 9% have lost their jobs altogether – the very best find out of all age groups.Industries that traditionally employ younger staff like pubs, restaurants and leisure centres have remained shut throughout the UK’s eight-week lockdown, as have many shops.

Employees across all age groups were found to be more likely to earn but they did in January than earn more.

Those aged 35 to 44 were the smallest amount likely to possess been furloughed or lost their jobs, with around 15% experiencing this since the outbreak began.

Official unemployment statistics for the primary quarter of the year are due out later.The Resolution Foundation, which studies earnings of lower and middle income-workers, surveyed quite 6,000 UK adults at the start of May.

The Health Foundation, the charity which funded the research, says it had been concerned that the present crisis is magnifying already-precarious employment conditions children face.

However, the report found the size of pay reductions during the crisis would are greater were it not for the government’s job retention scheme.

The scheme covers 80% of workers’ ante up to £2,500 per month and was recently extended to October.A quarter of the workforce, some 7.5 million people, are now covered by the arrangement, which has cost £14bn a month.

However, campaigners said it’s made “no difference” to the thousands of individuals who initially fell through the cracks.

Last week, the chancellor warned it had been “very likely” the united kingdom is during a “significant recession”, as figures revealed the economy contracting at the fastest pace since the financial crisis.

Countries round the world are battling surges in unemployment thanks to the pandemic.

More than 36 million people are now filing for unemployment benefits within the US, representing almost 1 / 4 of the American workforce.

Source: bbc news

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