Young workers are the hardest hit by covid. Some areas of the economy are recovering but young workers are under represented in these areas. 

A new major study by HSBC UK shows that there will be long lasting damage to youth employment prospects and will exacerbate inequalities within this labour market much further. 

3 in 5 jobs lost in sectors where youth employment is highest. 

This has financial and social ramifications. 

  • The economic cost of higher youth unemployment in terms of lost national output is forecast to be £5.9 billion in 2021, rising to £6.9 billion in 2022.
  • The fiscal cost of higher youth unemployment, in the form of lower tax revenue and higher benefit spending, is forecast to be £2.5 billion in 2021, rising to £2.9 billion in 2022.
  • The long-running scarring cost for young people entering the labour market in 2021 alone is forecast to be £14.4bn over the next seven years. This relates to the impact on employment and earnings they are likely to suffer for at least seven years, due to entering the labour market at a time of higher unemployment.

On the social side: 

  • Analysis shows that the decline in working hours for young people with no qualifications (34%) has been five times higher than the decline for those with a degree level qualification (7%).  
  • The report also finds the decline in hours worked for Black young people (49%) has been three times higher than for white young people (16%).
  • New data surveying UK employers finds two in five (41%) feel the pandemic will have a negative impact on young people’s prospects in their sector in five years’ time. 

What can you do?

The government’s Kickstart scheme provides funding to employers to create job placements for 16–24-year-olds who are on Universal Credit.

Kickstart is a work experience programme that provides fresh opportunities to young people and also delivers new talent, fresh thinking, new energy and fresh ambition to participating organisations. 

This has been a tough year for the new generation of work entrants and this scheme is an opportunity to make a difference.

Register here for a session to find out more about Kickstart. 

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