Pandemic casts a shadow on the economic future of young people

La pandémie assombrit l’avenir économique des jeunes

LONDON | Losses of employment, purchasing power, confidence in the future : young people pay dearly for the pandemic COVID-19, which could give birth to a new “lost generation” economically, as after the last financial crisis.

Half of the millénariaux (25-34) and Generation Z (18-24 years old) in the world have already experienced the impact of the crisis of the COVID-19 on their portfolio, according to a study by consulting firm Kantar published in may.

This is the case of Peter, 26 years of age, the young london-based company specialized in the recruitment, which was used for nearly a year, thanked the 23 march, the first day of the confinement in addition to the Channel.

During a first telephone call in the morning, the direction ” explains the new organization and containment, and specifies that he does not need to worry about for the layoffs, that the +choice+ potential would occur later, after a month or a month and a half “, he said to the AFP.

“At 16 h, the president of the company writes to me “should be called”. I understand straight away, it was pretty brutal, ” he continued. Approximately 15 % of the workforce will be laid off that day.

Stone is far from being an isolated case in the United Kingdom : 640 000 young people aged 18 to 24 years of age could join the ranks of the unemployed this year in the country, adding to the 408 000 that are already there, after an evaluation of the think-tank Resolution Foundation.

The figures are corroborated by a survey by the Institute of Student Employers (ISE), which show that more than a quarter of companies are reducing the number of graduates they hire this year. Internships are also reduced by nearly a third, according to the survey of 124 companies.

“Everywhere, the containment has reinforced the inequality between the workers and the young and the less skilled are” often on the front line ” in the fight against the pandemic, was found Wednesday, Laurence Boone, chief economist of the Organisation for economic cooperation and development (OECD).

A few days earlier, it is the international labour Organization, which came to emphasize the precariousness of young people because of the pandemic : according to a survey of the under 29 years of age, a young person out of six has stopped working since the onset of the COVID-19 and those who have kept their jobs have seen their working time decrease of 23 %.

Morale

Adds a severe blow to morale : according to a study by Kantar, three out of four young expect to suffer in the future the consequences of the crisis, more than any other generation.

Young women are particularly vulnerable. According to a study by the british association Young Women’s Trust, 36 % of young women work in sectors hit hard by the containment measures, such as catering, retail trade, or the industries of recreation and tourism, compared to only 25 % for young men.

These sectors are also major providers of part-time jobs favored by students.

“You find yourself without savings, without money, it is quite nerve-wracking,” says David, 35, a lifeguard in a swimming club in Madrid put the part-time unemployment, march 13.

“These are my parents who give me money until I get paid unemployment benefits, because otherwise I can’t pay the bills, food, rent for my garage “, he said to the AFP.

In Spain, ” almost 50% of the destruction of employment that has occurred since the beginning of the crisis has focused on people who have less than 35 years “, said the minister of social Security José Luis Escrivá.

The unemployment rate of young people under 25 years of age was 33 % in the first quarter of 2020 in the country.

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