We are facing the worst jobs crisis in a generation – with young people (18–24) set to be hit particularly hard. Covid-19 is first and foremost a health crisis, but it has increasingly morphed into an economic one as well. However, this will be fundamentally different to the 2008–9 crisis. In particular, it will result in a much larger employment effect, with the Office for Budget Responsibility forecasting 3.4 million people out of work this year (up from 1.3 million).
Young people will be particularly affected. We estimate that without further government action there will be an extra 620,000 young people unemployed by the end of the year (with 380,000 new claims to benefit between April and the end of the year expected to last for six months or more).
This report makes the case for bold policy interventions to prevent youth unemployment.
