Most young workers suffered pay cut during pandemic, study finds

Almost two-thirds saw their earnings reduced, while more than one in ten lost their job entirely.

29 Oct 2020| News

Most workers between the ages of 16 and 25 have lost earnings during the Covid-19 pandemic, research from the London School of Economics and Exeter University has found.

One in six young workers saw a loss in income and those who are female, self-employed or brought up in a low-income family were hit hardest.

They were also twice as likely to lose their job compared with older workers, with over 10% of under-25s being laid off, contributing to an 18.3% unemployment rate in this age group compared with 11.9% aged between 26 and 65.

While all young people still in education have suffered setbacks to their tuition as a result of lockdown, the research also confirmed that the children of richer families were significantly less likely to fall behind.

Only 38% of state school pupils were able to attend full school days in April, compared with 74% of private school students, and lower-income university students lost 52% of their teaching hours compared with 40% for higher income students.

“These are very significant hits to the labour market for young adults in particular. There is a real concern that people who have lost their jobs are moving onto trajectories heading to long-term unemployment, the costs of which are substantial,” Professor Stephen Machin, Director of the Centre for Economic Performance and report co-author, said.