David Willetts, President of the Resolution Foundation

#IntergenerationalAudit - @ResFoundation warns of a lost ‘covid generation’, with youth unemployment at risk of reaching its 1980s peak 

Hopes of a V-shaped recovery have given way to the reality of a U-shaped crisis, with young adults and young pensioners most likely to have stopped working during the pandemic, according to the Resolution Foundation’s annual Intergenerational Audit published today (7 Oct).

A U-shaped pattern emerges when looking at the impact of the crisis on people’s jobs. Over half of those aged 18-24 and 65+ who were employed before the pandemic have since stopped working – either by being furloughed or by losing their jobs altogether – compared to fewer than a third of those aged 30-50.

These conclusions where confirmed by findings in the most recent publication of EMSI's Shedding Light on the Labour Market, which showed that whilst the majority of young workers have been furloughed, the biggest rise in unemployment is among older workers

The U-shape of this jobs crisis reflects the fact that young and older workers are heavily concentrated in social sectors of the economy that have been hit hardest by public health restrictions.

The Foundation warns that young and pension-age workers are most at risk during the next phase of the crisis, as furloughing ends and unemployment continues to rise. It notes that should the Office for Budget Responsibility’s projection for unemployment to reach 11.9 per cent materialise, youth unemployment could rise to around 17 per cent – the same level as the early 1980s peak.

For younger generations, holding back rising unemployment by protecting jobs and supporting the creation of new jobs, including via direct public investment, will be vital to prevent losing a covid generation to long periods out of work.

The report – supported by the Nuffield Foundation – offers the first comprehensive assessment of the initial phase of the coronavirus crisis for different generations in Britain, from people’s mental health and wellbeing, to their jobs, pay, living conditions, wealth, spending patterns and household incomes.

The report notes that the starkest impact of COVID-19 has been on mortality, which has overwhelmingly fallen on older generations.

However, young adults and young pensioners have experienced the biggest deterioration in their mental health during the crisis so far, which the report says is likely to reflect the wider economic and social impacts of the pandemic.

For example, the proportion of adults experiencing poor mental health has increased by 80 per cent among 18-29-year olds during the pandemic (compared to 2017-2019) and by 68 per cent among those aged 65-79.

But while the jobs crisis has affected young and old alike, the report shows that the impact of the crisis on people’s living conditions has fallen most heavily on young people. Around one-in-seven people under the age of 30 have missed a rent or mortgage since the pandemic began, compared to just one-in-thirty 60-69s.

Young people (aged 16-24) have also experienced lockdown living in housing with half as much space as those aged 65+ (26 square meters per person, compared to 50), with greater risks of damp, no garden access – and now eviction.

Finally, the report notes that while generations have had very different experiences of the covid crisis so far, Britain’s path out of the crisis rests on a strong living standards recovery for all age groups.

For older generations too, the report notes that pensioners typically spend a bigger share of their income on activities that involve socialising, such as eating out, than any other age group.

Suppressing the virus would therefore encourage back the pre-pandemic boom in pensioners’ social spending – helping to rebuild Britain’s hospitality, retail and leisure sectors, and the jobs they provide for young adults and young pensioners.

David Willetts, President of the Resolution Foundation, said:

“The pandemic has already cost tens of thousands of lives, millions of people their livelihoods, and upended everyone’s daily lives. As hopes of a V-shaped recovery fade, our analysis reveals the reality is more of a U-shaped crisis, with young adults and young pensioners most likely to have stopped work or suffered mental health problems.

“For younger generations, this crisis has created wider problems. The growth of the high-cost, low-security private rental sector has led to missed housing payments and cramped living spaces during lockdown. It has also reinforced the underlying trends for younger people to have less wealth than young people did a generation ago, while increases in the value of houses and pensions particularly benefit older generations.

“With infections rising again, the covid crisis is sadly far from over. That means the risk of losing a covid generation to long-term youth unemployment is real. But there is plenty that policy makers can do to prevent it – from extra training provision to a greater focus on creating new jobs to support people out of this crisis.”

Alex Beer, Welfare Programme Head at the Nuffield Foundation said:

“While all generations are at risk of the social and economic impacts of the COVID-19 pandemic, this timely audit shows that alongside direct consequences on the mortality of those over the age of 45, younger and older workers are bearing the brunt of job insecurity and risks to their economic and wider well-being. It also highlights significant variation in experiences of the pandemic within age groups, including in the psychological well-being of renters and home owners, and the lack of access to outside space for children from black, Asian and minority ethnic backgrounds.   

“As the crisis continues, this research suggests that it is crucial for the government to not only support incomes, but to also take a broader approach to building resilience and improving living standards. Access to housing, skills training and mental health support will also be crucial for those most at risk of the adverse effects of the pandemic.”

Katie Schmuecker, Deputy Director of Policy & Partnerships at the Joseph Rowntree Foundation, said:

“Today’s research serves to remind us that we are by no means through the economic storm unleashed by coronavirus. Many of those at greatest risk of poverty prior to the pandemic are being hardest hit by rising unemployment, loss of hours or income shocks. What we do next will determine whether we see a rising tide of poverty across our country.

“As the furlough scheme unwinds we will enter a new phase in our economic response. A good jobs recovery that targets investment in job creation, skills and retraining will be vital if we are to avoid making existing inequalities in our economy worse. We must ensure that families continue to receive the vital support they need to stay afloat. This requires making the increase to Universal Credit permanent, extending the same lifeline to those on legacy benefits, as well as investing in building significantly more social housing.”

You may also be interested in these articles:

Sponsored Video

Advertisers

Upcoming FE Events

Advertiser Skyscrapers

Newsroom Activity

Strategic Development Network (SDN) added a new event 39 minutes ago

2 part online workshop: Supporting staff in difficult...

It is estimated that an additional 500,000 people will experience mental health problems as a result of COVID-19 in the coming years. Over the last...

  • Tuesday, 08 June 2021 10:00 AM
  • Online

Latest Education News

Further Education News

The FE News Channel gives you the latest education news and updates on emerging education strategies and the #FutureofEducation and the #FutureofWork.

Providing trustworthy and positive Further Education news and views since 2003, we are a digital news channel with a mixture of written word articles, podcasts and videos. Our specialisation is providing you with a mixture of the latest education news, our stance is always positive, sector building and sharing different perspectives and views from thought leaders, to provide you with a think tank of new ideas and solutions to bring the education sector together and come up with new innovative solutions and ideas.

FE News publish exclusive peer to peer thought leadership articles from our feature writers, as well as user generated content across our network of over 3000 Newsrooms, offering multiple sources of the latest education news across the Education and Employability sectors.

FE News also broadcast live events, podcasts with leading experts and thought leaders, webinars, video interviews and Further Education news bulletins so you receive the latest developments in Skills News and across the Apprenticeship, Further Education and Employability sectors.

Every week FE News has over 200 articles and new pieces of content per week. We are a news channel providing the latest Further Education News, giving insight from multiple sources on the latest education policy developments, latest strategies, through to our thought leaders who provide blue sky thinking strategy, best practice and innovation to help look into the future developments for education and the future of work.

In May 2020, FE News had over 120,000 unique visitors according to Google Analytics and over 200 new pieces of news content every week, from thought leadership articles, to the latest education news via written word, podcasts, video to press releases from across the sector.

We thought it would be helpful to explain how we tier our latest education news content and how you can get involved and understand how you can read the latest daily Further Education news and how we structure our FE Week of content:

Main Features

Our main features are exclusive and are thought leadership articles and blue sky thinking with experts writing peer to peer news articles about the future of education and the future of work. The focus is solution led thought leadership, sharing best practice, innovation and emerging strategy. These are often articles about the future of education and the future of work, they often then create future education news articles. We limit our main features to a maximum of 20 per week, as they are often about new concepts and new thought processes. Our main features are also exclusive articles responding to the latest education news, maybe an insight from an expert into a policy announcement or response to an education think tank report or a white paper.

FE Voices

FE Voices was originally set up as a section on FE News to give a voice back to the sector. As we now have over 3,000 newsrooms and contributors, FE Voices are usually thought leadership articles, they don’t necessarily have to be exclusive, but usually are, they are slightly shorter than Main Features. FE Voices can include more mixed media with the Further Education News articles, such as embedded podcasts and videos. Our sector response articles asking for different comments and opinions to education policy announcements or responding to a report of white paper are usually held in the FE Voices section. If we have a live podcast in an evening or a radio show such as SkillsWorldLive radio show, the next morning we place the FE podcast recording in the FE Voices section.

Sector News

In sector news we have a blend of content from Press Releases, education resources, reports, education research, white papers from a range of contributors. We have a lot of positive education news articles from colleges, awarding organisations and Apprenticeship Training Providers, press releases from DfE to Think Tanks giving the overview of a report, through to helpful resources to help you with delivering education strategies to your learners and students.

Podcasts

We have a range of education podcasts on FE News, from hour long full production FE podcasts such as SkillsWorldLive in conjunction with the Federation of Awarding Bodies, to weekly podcasts from experts and thought leaders, providing advice and guidance to leaders. FE News also record podcasts at conferences and events, giving you one on one podcasts with education and skills experts on the latest strategies and developments.

We have over 150 education podcasts on FE News, ranging from EdTech podcasts with experts discussing Education 4.0 and how technology is complimenting and transforming education, to podcasts with experts discussing education research, the future of work, how to develop skills systems for jobs of the future to interviews with the Apprenticeship and Skills Minister.

We record our own exclusive FE News podcasts, work in conjunction with sector partners such as FAB to create weekly podcasts and daily education podcasts, through to working with sector leaders creating exclusive education news podcasts.

Education Video Interviews

FE News have over 700 FE Video interviews and have been recording education video interviews with experts for over 12 years. These are usually vox pop video interviews with experts across education and work, discussing blue sky thinking ideas and views about the future of education and work.

Events

FE News has a free events calendar to check out the latest conferences, webinars and events to keep up to date with the latest education news and strategies.

FE Newsrooms

The FE Newsroom is home to your content if you are a FE News contributor. It also help the audience develop relationship with either you as an individual or your organisation as they can click through and ‘box set’ consume all of your previous thought leadership articles, latest education news press releases, videos and education podcasts.

Do you want to contribute, share your ideas or vision or share a press release?

If you want to write a thought leadership article, share your ideas and vision for the future of education or the future of work, write a press release sharing the latest education news or contribute to a podcast, first of all you need to set up a FE Newsroom login (which is free): once the team have approved your newsroom (all content, newsrooms are all approved by a member of the FE News team- no robots are used in this process!), you can then start adding content (again all articles, videos and podcasts are all approved by the FE News editorial team before they go live on FE News). As all newsrooms and content are approved by the FE News team, there will be a slight delay on the team being able to review and approve content.

 RSS IconRSS Feed Selection Page