The Resolution Foundation have released a new report today exploring how coronavirus will impact workers, with young workers set to be hit hardest.
Over one in three 18-24 year olds, and three in ten workers in their early 60s, are receiving less pay than they did at the start of the year, compared to less than a quarter of workers aged 35-49.
Based on a survey of 6,005 UK adults in early May and supported by the Health Foundation, the report examines how the current crisis has already affected workers of different ages in terms of their jobs, pay, hours and working conditions.
The report builds on previous Resolution Foundation research which shows that young people (excluding students) tend to be hit hardest during downturns, and are particularly at risk in the current one as they are more likely to work in the hardest hit sectors of the economy, such as hospitality, leisure and retail.
Current earnings
- employees across all age groups are more likely to be earning less than they did in January than earning more, though young and older workers are most affected.
- 35% of 18-24 year olds are earning less that they did before the outbreak (13% are earning more)
- employees in their early 60s are the next most likely to be receiving less pay (30%), with a further 9 per cent receiving more pay.
- 23% of 35-49 year olds are earning less, while 5 per cent are earning more.
Out of work
- young people are also the most likely to have lost work – though other age groups have been affected.
- One in three 18-24 year olds employees have lost work, either through being furloughed (23 per cent) or losing their jobs completely (9 per cent).
- One in five (20 per cent) employees in their late 20s (aged 25-29) have either been furloughed or lost their jobs, along with around one in six (18 per cent) workers in their early 60s (aged 60-64).
- Employees aged 35-44 are the least likely to have been furloughed or lost their jobs, with around 15 per cent experiencing this since the crisis began.
Maja Gustafsson, Researcher at the Resolution Foundation, said:
“Our research confirms fears that young people are being hardest in the current crisis. One in three young people have been furloughed or lost their jobs completely, and over one in three had had their pay reduced since the crisis started.
“But while young people are in the eye of the storm, they are not the only group who are experiencing big income shocks. Britain is experiencing a U-shaped living standards crisis, with workers in their early 60s also badly affected.
“That is why the Government’s strategy to support the recovery should combine targeted support to help young people into work, with more general stimulus to boost demand across the economy and help households of all ages.”
