A new report from Learning and Work Institute and The Prince’s Trust (supported by HSBC UK) has raised significant concerns about the long lasting impact of the pandemic on youth unemployment.
Despite considering employment (unemployment) as a whole, The major study, supported by HSBC UK, shows how, while some areas of the economy might begin on the road to recovery, young workers are under-represented in these sectors, and the industries that typically employ young people will be hardest hit in the long term.
New economic forecasting reveals that, while young people’s employment has been worst affected by the pandemic with under 25s accounting for three in five jobs lost, youth unemployment is due to climb further still, even as the economy recovers.
The report also has the following headlines:
- The economic cost of youth unemployment, in terms of lost national output, is forecast to rise to £6.9 billion in 2022
- The fiscal cost of youth unemployment, in the form of lower tax revenue and higher benefit spending, is forecast to be £2.9 billion in 2022
- The long-running scarring cost to young people entering the labour market in 2021, in terms of lost earnings and damage to employment prospects, is forecast to be £14.4 billion over the next seven years
To see the full report and additional commentary from the Learning and Work Institute, click here.