Learning and Skills think tank highlights unequal impact of pandemic on employment and incomes of young people, BAME populations and single parents

New report calls on government to focus on building a better and more inclusive post-Covid economy for the future, not simply return to ‘business as usual’

A new report from the employment and skills think tank Learning and Work Institute has highlighted the unequal impact of the Covid-19 pandemic on employment rates and incomes of young people, Black, Asian and minority ethnic (BAME) populations and single parents.

Published to mark the anniversary of the first lockdown, One year on - The labour market impacts of coronavirus and priorities for the years ahead examines the unequal effects of the pandemic in the context of the government’s ‘levelling up’ policy - highlighted in Boris Johnson's first speech as Prime Minister when he made clear his intention to boost economic performance outside of London and the South East, to ‘level up’ across the country and to revive the fortunes of the UK’s ‘left-behind’ towns and cities.

Key findings include that -

•  the number of people claiming unemployment-related benefits has risen three times faster in areas with the highest pre-crisis unemployment than in lower-unemployment areas;
• areas that have higher BAME populations have seen claimant rates rise more than three times faster than areas with lower BAME populations, and two times the national average;
• young people account for one half of the falls in employment, despite accounting for only 12 per cent of total employment;
• single parents who saw their working hours fall by 26 per cent -  more than other groups of workers - were more likely to say it was difficult to manage financially during the pandemic and so will be more adversely affected if the £20 universal credit 'uplift' is withdrawn as currently planned in October 2021.

Warning that, overall, unemployment is expected to be almost one million higher by late 2021 compared to before the pandemic and that, despite the Coronavirus Job Retention Scheme preventing employment dropping in line with reduced economic output, long-term unemployment is already up by 25 per cent in the last year, Learning and Work calls for the government to focus on building a better and more inclusive economy for the future, not simply a return to ‘business as usual’.

To that end, it sets out five priorities for the government to fix the structural economic weaknesses identified in the report -

• introduce a Youth Guarantee of a job, apprenticeship or training offer for all young people;
• make the £20 per week universal credit uplift permanent;
• use expanded employment support, like new work coaches and the Restart scheme, to help those who were out of work before the pandemic, rather than cutting support back to save money if unemployment peaks lower than previously expected;
• bring back furlough and other support if a resurgence in the virus means further restrictions are required; and
• renew the focus on good work and progression, so people have jobs that give them security and opportunities to get on.

Chief executive of the Learning and Work Institute Stephen Evans said today -

‘Unemployment has increased significantly during the pandemic despite support like the furlough scheme limiting the damage, with groups such as young people disproportionately affected. We need to avoid this damage affecting us for years to come. As the economy reopens, the government should introduce a Youth Guarantee so all young people are in education or work, make the universal credit uplift permanent, and harness the potential of green growth. Our aim should be recovery from the pandemic and building the economy and society we want.’

For more information, see Pandemic has widened jobs and skills inequalities, putting ‘levelling up’ at risk from the Learning and Work Institute website.