Avatar
Hello
Guest
Log In or Sign Up
Number of Unemployed People in UK Over 50 Rises by Third?
November 25, 2020
0

There are now 91,000 more unemployed older people than there were 12 months ago.

The number of unemployed people aged over 50 in the UK has increased by a third in the past year, according to analysis of official figures.

There are 91,000 more unemployed older people than there were 12 months ago, the biggest percentage increase of all age groups and significantly more than the national average increase of 24%.

While the unemployment rateis significantly higher for those aged under 24, analysis shows that it is among older workers that there has been the greatest percentage increase.

Lawrence Wragg, 54, from Sutton Coldfield, was made redundant from his role as a project manager in March this year. Since then, he has applied for dozens of jobs but has only had a handful of interviews.

“My salary and age have definitely been a barrier to me finding a new job during the pandemic,” he said. “I find Zoom interviews challenging because I find it hard to convey a sense of personality.”

The data from the Office for National Statistics, analysed by the over-50s job site Rest Less, shows that unemployment levels for people aged 18-24 increased by 104,000 in the past year – or 25%. For those aged 25-34, the increase was 74,000, or 28%, and for those aged 35-49 years old, the increase was 51,000, or 19%.

Stuart Lewis, founder of Rest Less, said that while the unemployment rate was significantly higher for those aged under 24, the youth unemployment rate was high a year ago before the pandemic arrived.

“There is no doubt that we are facing a youth employment crisis right now but less well documented is the fact that we are also facing a long-term unemployment disaster amongolder workers,” he said.

“Not only have we seen a rapid rise in unemployment in the over-50s since this time last year but our previous research has shown that once unemployed, this group is significantly more likely to remain in long-term unemployment than their younger counterparts,” he added.

Caroline Abrahams, the charity director at Age UK, urged the government to increase back-to-work support for older workers. “It’s of great concern that many older workers appear to have been losing their jobs at such a difficult time, especially as they may face additional barriers returning to work compared to younger workers,” she said.

Earlier research by the Centre for Ageing Better and the Learning and Work Institute found that about 377,000 extra older workers – one in 10 male, and eight in 10 female workers in their 50s and 60s – face a significant risk of losing their jobs when the government’s furlough scheme is wound down next year.

Additional analysis of Department for Work and Pensions data by the Centre for Ageing Better found that over-50s were less likely to bounce back from unemployment than any other age group: just 35% who lose their job return to work “quickly”, with 29% remaining unemployed for more than 12 months.

​Dr John Philpott, a labour market economist, social commentator and former director of the Employment Policy Institute, an independent public policy thinktank, said: “The popular view that the Covid-19 pandemic has … hurt the young far harder when it comes to jobs [but that] does not tell the entire story.

“With the level of job vacancies far below the pre-pandemic high, jobseekers of every age are struggling to find work and endemic age discrimination is making it doubly difficult for unemployed people aged over 50 whose number is climbing fast,” he added.

Employees Becoming ‘Emotionally Remote’ During Coronavirus

More than half (52%) of UK employees have said that the boundaries between their work and home life are becoming increasingly blurred due to working from home during the coronavirus pandemic.

According to insurance provider Aviva’s new Embracing the Age of Ambiguity report, employees said they are becoming emotionally remote whilst working from home. 

Just 15% agreed that their employer is trying hard to understand what motivates them, and a quarter (26%) said their employer is genuinely concerned about their wellbeing. 

Speaking to HR magazine, Paul Wilson, chief marketing officer at Aviva UK Life, Savings and Retirement said that employees’ needs and expectations have evolved while remote working. 

He said: “Our evidence suggests that employees are increasingly ‘plodding’ through work. 

“They seek work-life balance, control over career progression and help with wellbeing and retirement planning. Understanding employee motivations is a key opportunity for HR teams to strengthen engagement and combat the sense of ‘employee drift’ in the workplace.” 

The majority (73%) of employees surveyed said where they work hasn’t changed since the start of the March lockdown. This has reportedly had an impact on employee mental health. 

Two in five (43%) employees described their wellbeing as being less than good, and more than a third (34%) said they did carry on working even when they felt unwell. 

Heightened anxiety has also led to employees working longer hours and taking fewer sick days over a three-month period (67% in February vs. 84% in August). 

While the report suggested responsibility is on employers to ensure they provide the right environment for employee work-life balance and wellbeing to thrive, it stated it is “a two-way street” and employees need to play their part too. 

Fifty-four per cent of UK employees said that their employer has worked hard to create a sense of ‘company togetherness’. They are predominantly doing this by embracing an open dialogue and communicating future working arrangements, according to 60% of employees. 

In the report, Laura Stewart Smith, workplace savings manager at Aviva said: “A new ‘psychological contract’ will only work if it’s based on the same unambiguous outcome – better mental health and financial and physical wellbeing – and each party should play their respective roles to uphold this.” 

In response to the report’s findings, Aviva made a series of recommendations it believes will help employers reset relationships with employees. 

It advised that employers should personalise mental health and wellbeing support; maintain a sense of purpose, clarity and autonomy in the workplace; prepare workers for fuller working lives and the transition from work to retirement and create more targeted interventions by understanding personality types.

By Emma Greedy HRMagazine

One in Five Freelancers Could Quit Self-employment

By: Rachel Miller

After two decades of growth in UK self-employment, a new study by the London School of Economics has found that one in five freelancers consider it likely that they’ll leave self-employment as a result of the coronavirus crisis.

The research, undertaken by the Centre for Economic Performance at the London School of Economics (LSE), found that the easing of pandemic restrictions over the summer only had a marginal effect on the self-employed, with 58% saying they had less work than usual in August 2020.

The LSE report – COVID-19 and the Self-Employed: Six Months into the Crisis – has found that even after England’s first lockdown lifted, 32% of self-employed workers had fewer than 10 hours of work a week in August.

Self-employed workers who operate through digital apps in the gig economy have had more work, according to the LSE report. However, 78% of these workers – including parcel delivery workers and private hire drivers – said they felt their health was at risk while working.

Other key findings include:

  • 28% of respondents had applied for a second grant under the Self-Employment Income Support Scheme (SEISS);
  • Of those who had not applied for either the first or second rounds of the SEISS grant, 38% were not sure of their eligibility;
  • A third of respondents think normal activity will not resume until after February 2021;
  • One in ten think it will never resume.

Of most concern is that 20% of freelancers polled said they “consider it likely” that they’ll leave self-employment as a result of the crisis – this rises to 59% among those aged under 25. The newly self-employed are more than twice as likely to report having trouble with basic expenses when compared to other self-employed workers (52% versus 24%).

Stephen Machin, co-author and CEP director, said:

“While the growth in self-employment has been one of the key trends in the labour market in the past two decades, there are now early signals that this trend could be set to reverse.

“By the summer, there had already been a sharp fall in the number of self-employed workers – this may be primarily due to the lockdown, but for some it will be due to realising the risks of self-employment. The COVID-19 crisis has vividly illustrated the social insurance available to different types of workers, with many experiencing the basic safety net of Universal Credit for the first time.”

According to the Association of Independent Professionals and the Self-Employed (IPSE), “glaring gaps in support” are leading to “long-term, avoidable decline” in the self-employment sector.

The latest data from the Office for National Statistics (ONS) shows that the number of self-employed workers in the UK has already fallen to 4.53 million, down from 5.1 million at the end of 2019.

Derek Cribb, IPSE ceo, said:

“After the 2008 financial crisis, it was rising self-employed numbers that kept unemployment comparatively low – as uncertain employers looked for more flexible expertise instead of permanent employees. Now, this does not appear to be happening and the self-employed sector is in precipitous decline. Some self-employed are finding their way into full-time roles, but many others are joining the record flow into unemployment.

“Government must work quickly to stem this flow by urgently getting support to the left-behind self-employed groups. Extending support would be a cost now, yes, but it would be a temporary cost during the pandemic, to hold back an even worse unemployment problem later.”

Written by Rachel Miller.

Jobcentre Guidance on New National Covid Restrictions
November 11, 2020
0

DWP PRESS RELEASE 9 November 2020: On 31 October 2020, the Prime Minister announced that the Government will be introducing new national COVID-19 measures in England to protect the NHS and save lives.

This means from 5 November 2020 until 2 December 2020 in England, the following updated jobcentre guidance will apply to customers, and will ensure essential support is provided whilst keeping colleagues and customers safe.

  • Jobcentres will remain open, as they have throughout this pandemic, to provide essential services and support to those whom we cannot help in any other way.
  • We will ensure that this support continues to be delivered in line with the latest government and PHE guidance – such as maintaining social distancing and rigorous cleaning regimes – keeping our colleagues and customers safe.
  • Customers will continue to be supported by Work Coaches online and over the phone, with jobcentres remaining open to help those who need extra support and are unable to interact with us on the phone or digitally.
  • Our Work Coaches will continue to deliver employment support programmes such as Kickstart and JETS, by phone or through online channels.
  • Face-to-face assessments for disability benefits remain suspended.
  • If you think you might be entitled to a health and disability benefit, you should contact us as soon as possible to make a claim in the usual way.
  • For existing customers, payments will continue as normal. Anyone who has a change in their needs should contact us immediately so we can ensure they are receiving the correct level of support.

On 3 November 2020, we also confirmed that the suspension of the Minimum Income Floor – for self-employed customers claiming Universal Credit in England, Scotland, and Wales – has been extended to the end of April 2021. This means that self-employed customers on Universal Credit will receive a payment that reflects their earnings at this difficult time.

For Scotland:

On 2 November, the Scottish Government introduced a new five level tiered system. The following will therefore apply to jobcentres and customers in Scotland:

Levels 0, 1 and 2 guidance:

  • Customers will continue to be supported by Work Coaches online and over the phone, with jobcentres remaining open to help those who need extra support and are unable to interact with us on the phone or digitally.
  • All jobcentres to remain open – maintaining social distancing and regular desk and communal space cleaning in line with current Covid-19 guidance.
  • If you think you might be entitled to a health and disability benefit you should contact us as soon as possible to make a claim in the usual way.
  • For existing customers, payments will continue as normal. Anyone who has a change in their needs should contact us immediately so we can ensure they are receiving the correct level of support.

Levels 3 and 4:

  • For these levels, the jobcentre guidance in place for the new national restrictions in England until 2 December 2020 (above) will apply.

For Wales:

The Welsh Government introduced the two week ‘firebreak’ restrictions in Wales on 26 October 2020 that will last until 9 November 2020. The jobcentre guidance in place for the new national restrictions in England until 2 December 2020 (above) will apply during this period.

After 9 November 2020, the Welsh Government announced an easing of restrictions. From then, the following will apply to jobcentres and customers in Wales:

  • All jobcentres to remain open – maintaining social distancing and regular desk and communal space cleaning in line with current Covid-19 guidance.
  • Customers will continue to be supported by Work Coaches online and over the phone, with jobcentres remaining open to help those who need extra support and are unable to interact with us on the phone or digitally.

For Northern Ireland:

Please contact the Department for Communities for more information on measures introduced in Northern Ireland – 028 9082 9000.

A DWP spokesperson said:

Jobcentres have remained open throughout this pandemic to provide vital support and essential services to those whom we cannot help remotely.

These new measures will ensure that we can continue this support while keeping our colleagues and customers safe, following the latest Government and PHE guidance.”

FBS Small Business Index

The latest FSB Small Business Index has found that times are tougher than ever for small firms after two difficult years.

The survey of 1,500 UK small firms, conducted by the Federation of Small Businesses (FSB), finds that SME confidence has been in negative territory for nine consecutive quarters – since July 2018. It comes as small business revenue growth hits an all-time low and staff lay-offs hit an all-time high.

The Q3 SBI confidence figure stands at -32.6, down 28 points on last quarter. Only a third (34%) of those surveyed at the end of last month expect their performance to improve over the coming three months. The significant majority (66%) expect performance to worsen.

The findings also show that a record one in four (25%) small firms reduced headcounts last quarter. An even higher proportion (29%) expect to make redundancies over the coming three months; 12% say they expect to let at least a quarter of their staff go.

COVID-related disruption has caused revenue growth to fall to its lowest recorded ebb, with more than half (56%) of those surveyed reporting a drop. A similar share (50%) expect revenues to fall next quarter.

The FSB is warning that any potential economic recovery is stalling ahead of a difficult trading period in the run-up to Christmas and the end of the Brexit transition period. More than half of exporters polled say international sales have fallen over the past three months.

Although the FSB has welcomed the chancellor’s improvements to the current business and job support schemes, it is now calling for new measures, including:

  • Support for those that have received no income support to date;
  • A reduction in the cost of hiring new staff;
  • Lessening the burden of business rates;
  • Providing more resources for those looking to start a business for the first time.

“We must not forget that small firms were already under the cosh thanks to political uncertainty, rising costs and creaking infrastructure well before the Spring,” said Mike Cherry, FSB national chairman.

“The chancellor made some very welcome adjustments to support measures last week … However, too many are still without the help they need to weather current disruption – not least company directors, the newly self-employed, those without premises and those further down supply chains in the retail, leisure and hospitality sectors. An ambitious rescue package for these groups is urgently needed.

“If we want small business owners to create jobs, we have to bring down the costs of employment, starting with employer national insurance contributions. If we want them to invest, innovate and expand, we have to alleviate the strain of wider government-imposed overheads, including those stemming from an outdated business rates system which continues to stifle too many community businesses all over the country.”

Written by Rachel Miller.

Generation Covid in Need of More Educational Support
October 30, 2020
0

The coronavirus pandemic has reportedly had the biggest impact on young people, especially those from a deprived background, as their education and job prospects have been largely affected.

Under 25s have been named ‘Generation Covid’ due to cuts to their earnings, education and job prospects, leading to fears for the long-term impact on the futures.

BBC Panorama found that people aged 16-to-25 were more than twice as likely as older workers to have lost their job, while six in 10 saw their earnings fall.

Jonathan Smith, chief executive at logistics firm APC Overnight told HR magazine:

“Whilst this year has understandably proved challenging for many, it’s critical that wherever possible, businesses consider the longer-term opportunities they can make available.

“Recruiting young people is key not just to businesses, but also to communities; without employment opportunities the young can’t contribute to their local areas and are ultimately forced to go elsewhere for employment.

“This could create real problems for future recruitment and talent acquisition,” said Smith.

Panorama’s research also highlighted the impact that school closures have had on young people, and how students from poorer backgrounds have received far less education than those from more privileged families.

Remote Working Leading to ‘Hidden Fractures’ in the Workforce
October 16, 2020
0

Hidden fractures’ caused by working from home are forming in the workforce and risk causing irreparable damage to cultures and productivity, according to new research from digital culture platform Totem.

The organisation’s survey of 1,000 UK employees found that while the shift to home working during the coronavirus pandemic has been a positive experience for many, there have been issues emerging around a lack of interaction, collaboration, recognition and support that could cause lasting damage to workplace trust, culture and engagement.

Nearly two-thirds (64%) of employees feel that working from home has had a positive impact on workplace culture, with the majority (61%) saying they are able to complete their work effectively while working from home.

But despite these benefits, Totem also found that while working from home, over half (55%) of employees feel it has been harder to work as a team, 54% feel less motivated, and 51% feel it is harder to reach out for help from teammates.

Totem warned that unless employers address these issues, surviving and maintaining growth as the economy recovers after the pandemic will be a much bigger challenge, particularly as remote working is likely to remain the norm for most in the short and medium term.

Marcus Thornley, CEO of Totem, said that businesses would have to find new ways to celebrate daily successes if remote teams are to stay motivated.

Speaking to HR magazine, he said: “The saying goes ‘out of sight, out of mind’ and, worryingly, for many companies working remotely right now, that may be the case as they struggle to communicate – and recognise each other’s successes – as they would in the office environment.”

The research also found there is a strong desire from many employees for remote working to continue.

While the majority (88%) of respondents worked from an office before COVID-19 hit, many people said they would now feel anxious (28%) or unhappy (18%) if their employer made it mandatory to return to the office full-time.

If they could choose, only 25% said they would work from an office full-time while 44% would choose hybrid working and the remaining 31% would choose to work from home full-time.

In addition to recognition (critical for 33% of respondents) the study found that accessible support and guidance when you need it (31%) was one of the most important elements to creating a positive remote working culture.

Thornley added: “First and foremost, business leaders need to design for remote. The reality is that many teams will have to operate on some sort of remote basis for the foreseeable future, so you need to ensure that you are working to create a shared experience, regardless of their location.

“For instance, although people may be sitting in their kitchen or living room, this doesn’t mean you can’t create meaningful experiences at key moments in employee life-cycles – whether that’s onboarding, promotions, new business wins, or leaving.

“If effectively supported, these key moments can positively shape sentiment towards employers, role and colleagues.”

Consumer research for the survey was undertaken on behalf of Totem by Pollfish, with fieldwork conducted online on 11September 2020.

ViewPoint: Navigating Careers in the Never Normal
October 13, 2020
0

This article by Julie Winkle Giulioni was published in SmartBrief.

Shortly after the global pandemic changed the face of the workplace, writers and leaders began contemplating the new normal — how the world would be once things settled down. Months in, as reality took hold, the language shifted from “new” to “next” – as “normal” became a moving target.

After more than six months, millions of lost jobs and countless pivots in service of evolving conditions and customer needs, we must again adjust how we talk about what’s to come. We might need to let go of what we used to know and acknowledge that the kind of stability and predictability we enjoyed in the past won’t return.

We’re not going back

By all accounts, we’re not going back to normal or new or next. And a range of factors — many established long before COVID-19 — are contributing to today’s never-normal-again environment.

  • Organizations were already under productivity and profit pressure. They were already leveraging assets and optimizing resources, doing exponentially more with less.
  • Competition was coming from new and varied sources. (Who would have imagined Amazon getting into the real estate business?) As a result, organizations were becoming more attuned, alert and anxious about protecting market share and expanding their pieces of the pie.
  • Disruption was the name of the game in early 2020. Now the combination of a global pandemic, economic downturn and racial inequity has left individuals and organizations feeling insecure and on unstable ground.
  • Workforce dynamics are in flux as working from home becomes the standard rather than the exception, which shifts power dynamics and democratizes opportunity. Whether one works as a vice president at corporate headquarters or as a supervisor out of a garage in Topeka, Kan., everyone occupies the same size tile and has the same volume voice in the new online workspace.

With so many forces and factors conspiring to reshape the business landscape, we should not expect a return to normal. To the contrary, we should expect a kaleidoscope of change coming at an unprecedented pace.

Savvy leaders and employees who recognize this new reality also recognize the implications, as well as the powerful opportunities for growth and career development within our never-normal environment. 

Never normal means more informal

The opportunities for growth are plentiful, but only for leaders and employees who embrace new approaches to learning and development. We can no longer rely upon old, formal, programmatic formulas. What’s needed are more organic, self-driven and informal means to mine the richness that the workplace has to offer.

Four shifts can introduce infinitely more opportunities for growth.

  1. Continuous learning must give way to creative learning through an ever-growing circle of resources. It’s been said that information is power. But given the nearly unlimited volume of data at our fingertips and speed with which things change, we can’t always wait for insights to be formally documented and chronicled, even if we could find it all. We need to go to the source: the people around us. That’s why the freshest and most necessary learning now happens in real time, in informal person-to-person interactions. As a result, tapping an always-growing network of resources is a powerful development and success strategy. 
  2. Agility equals ability. Seeing what’s next and pivoting gracefully will not only protect careers, it also will grow them in new, interesting and meaningful ways. Invest effort into becoming more flexible and nimbler in your thinking and actions. It’s one of today’s most highly valued competencies and will likely remain so.
  3. DIY development no longer only means “do it yourself.” In recent years, it’s become increasingly evident that employees must own their careers, taking the lead as they work with their leaders to craft plans to support their goals. While that philosophy remains valid, DIY today also stands for “develop individual yardsticks.” The days of the predictable progression up the corporate ladder are long gone. Continuing to hold those expectations as the measure of career success will only lead to disappointment and disengagement.As a result, everyone at every level of the organization must redefine success in ways that align with today’s realities. We must stop focusing on what we want to be. Instead of obsessing over promotions and position, we must begin defining career success in terms of the kind of work we want to do, the problems we want to solve and the challenges we want to embrace. This, then, becomes a unique and personal yardstick for success.
  4. Ad hoc feedback is the new individual development plan. The speed at which the workplace is changing and the uncertainty that accompanies it has rendered the idea of annual anything useless. Think about your development plans instituted last year. Much has likely been rendered null and void. The infrequent, formal conversations of the past simply don’t operate at the speed of business today. But, do you know what does? The day-in and day-out feedback we get from colleagues, customers, suppliers, contractors and others with whom we regularly interact. This informal feedback offers the insight, redirection and focus required for relevant growth and career success, especially during times of uncertainty and change.

There’s little that we can predict about the months and years ahead. Still, one thing is for sure. It won’t be the normal that we’d all come to know and love. Holding on to a new or next version of that will likely only leave us disappointed and unprepared.

Letting go of these expectations and embracing reality may not be easy. But it’s definitely the first step toward preparing for the growth and development required of a never-normal future.

Julie Winkle Giulioni works with organizations worldwide to improve performance through leadership and learning.  Named one of Inc. Magazine’s top 100 leadership speakers, Giulioni is the co-author of the Amazon and Washington Post bestseller “Help Them Grow or Watch Them Go: Career Conversations Organizations Need and Employees Want,” You can learn more about her speaking, training and blog at JulieWinkleGiulioni.com.

Employment: Seven Ways the Young Have Been Hit by Covid

By Eleanor Lawrie & Ben Butcher
BBC News

Young people have been particularly hard hit by the pandemic’s disruption to the jobs market.

The under-25s saw the biggest rise in unemployment during lockdown, and some graduate or entry-level roles attracted thousands more applications than usual.

1. Young people left the workplace first

Under-25s were more likely to be furloughed than any other age group.In the first three months of lockdown, half of eligible 16 to 24-year-olds were placed on the scheme, which supports people unable to work because of the pandemic, compared with one in four 45-year-olds. Hannah Slaughter, economist at the Resolution Foundation think tank, says hard-hit sectors like retail and hospitality – where many jobs cannot be done from home – have a disproportionately young workforce.

Chart showing furloughing

They were also the age group also most likely to lose their job, with the youth unemployment rate rising to 13.1%, compared with 4.1% for the whole UK. About 7% of 18-24 year-olds reported they had been made redundant because of the pandemic, compared with 4% of 50-65 year-olds. The government hopes to address this with its Kickstart scheme, which will pay employers £1,500 for every 16 to 24-year-old to whom they offer a ”high quality” work placement.

young people unemployment

2. Under-25s now make up a third of new universal credit claims

As youth unemployment rose, so too did the number of young people claiming universal credit. By July, just under one in three first-time universal credit claimants was under 25, up from one in five in March.

Chart showing the number of people claiming universal credit

But Ms Slaughter expects youth unemployment to get worse when the furlough scheme ends in October.”Young people are more likely to be in sectors which still aren’t up to the levels of activity before the pandemic” she said.”When businesses start making difficult decisions about redundancies, young people are likely to be disproportionately affected.”

3. Young adults in northern England were worst affected

These changes have not been evenly felt across the country, with more deprived areas seeing a quicker uptake in work-related benefits by young people. Using data on the uptake of universal credit and jobseeker’s allowance, BBC analysis found that the proportion of young people on the benefits had doubled between March and June.

A map of the UK shows where the highest proportion of out-of-work benefit claimants are.

The worst-hit areas were generally in the north of England, with parts of Liverpool and Blackpool most affected. In Liverpool’s Walton area, for example, one in five 16-24 year olds is now claiming universal credit or jobseeker’s allowance – up from 7% in January 2020. In total, 50 constituencies across the UK now have more than 15% of young adults claiming one of the benefits.

4. Online graduate job vacancies fell by 60%

Those looking for a job fresh from university are facing a tough timeThe number of graduate jobs advertised fell 60.3% in the first half of 2020 on one online recruitment website, compared with a 35.5% overall fall in adverts.About 5,000 jobs were listed on the CV-Library platform in January-July in the ”graduate” jobs category, compared with 2,000 a year earlier.

Chart showing competition for grad places

Within that, graduate jobs advertised in marketing fell by 84%, while roles in construction and administration both dropped by more than 70%. Applications only fell by 33%, meaning considerable extra competition for many roles. Twice as many people applied for public sector roles than the year before, and five times as many for IT vacancies. One positive was the average graduate salary on the platform increased by 7.1% year-on-year to £24,626.The fall in vacancies is borne out across the UK. Positions on online platform Adzuna were 45% lower in mid-September than in 2019, according to Office for National Statistics analysis.

5. Apprenticeships have stalled

Companies have taken on fewer apprenticeships over lockdown. From 23 March to 30 June, apprenticeship starts halved compared with the previous year, but this fall was not evenly split between age groups.

Chart showing monthly apprenticeship starts

Unsurprisingly, the sectors which saw the sharpest drop across all age groups were retail and tourism, which both declined by 75%. However, education placements only declined by a quarter.

6. Young people’s pay could be lower for three years after the pandemic

The UK’s financial watchdog, the Office for Budget Responsibility (OBR) estimates unemployment will hit 10% by the end of 2020, up from 4.1% last year .If this happens, young people who do find employment will face lower average wages for several years, Resolution Foundation analysis suggests, as they ”trade down” to the best job available.

Chart showing pay

Two years after leaving full-time education, it expects new education leavers’ hourly pay, after inflation, compared with pre-pandemic times, to be:

  • 8% lower for highly qualified leavers (degree and above)
  • 6% lower for mid-qualified leavers (A-level or equivalent)
  • 13% lower for lower-qualified leavers (GCSE and below)

As happened after the 2008 recession, lower-skilled workers are likely to take the biggest hit. But the effect will last longer for mid and high-skilled workers, who may end up in sectors with less opportunity for a pay rise than offered by traditional graduate jobs. That assumes lower-skilled workers can actually get a job. The think tank predicts they are a third less likely to be in employment three years after entering the jobs market, than if the pandemic had never happened.

7. Young people are more likely to stay in education

One positive outcome of the crisis is that younger people may remain in education. This would shield them from the worst of the downturn, and lead to higher productivity and a better-skilled workforce.

Young people are keen to stay on in education.   [ 40.5% of 18 year-olds applied to university by June, a record high ],[ 17% spike in new applications between March and June ],[ 1 year extra study could halve a low-skilled worker's unemployment chances ],[ 10% rise in postgraduate applications in the 2008-9 recession  ], Source: Source: UCAS, Resolution Foundation, Image: Woman in library

To an extent, this happened in the 2008 recession. The effect may be much larger this time around, says Xiaowei Xu of the Institute for Fiscal Studies, as sectors like hospitality and retail are also where many people first start working. ”There’s an incentive to staying on in education because of how terrible the economy is, which means that people may receive more and better education.”She adds that this year’s A-Level grade inflation means some students will go to a better university than they would have done.

Covid Will Change Future of Work and Skills Say Business Leaders

By The Careers and Enterprise Company

#FutureofWork Survey – Working from home is here to stay: Skills such as communication, self-motivation and reliability will now be essential.

Britain’s business leaders believe the workplace transformations brought on by Covid-19 will now become a permanent feature of the way we work and change demand for skills, according to new research released today.

The research indicates that business leaders believe the profound impact the pandemic has had on work-life will have lasting effects. Moves towards fewer people in offices, more home and virtual working are set to stay.

More than three-quarters of business leaders (77%) agree that fewer people in the workplace and office and more working from home will now become a permanent feature of working life.

More than four in five (83%) agree that on-line and virtual working will now remain a significant feature of the way we work.

The poll of 250 medium & large business leaders by Savanta ComRes for the Careers & Enterprise Company comes as NatWest boss Alison Rose recently predicted a hybrid flexible future combining home and office working as the new normal, with many businesses announcing they will continue to maintain a mix of home and office working.

The latest Office for National Statistics retail numbers show online now accounting for a record £3 out of every £10 spent, with a 47 per cent surge in online and mail-order sales since February.

Such underlying forces, accelerated by the pandemic lockdown, are shifting thinking in Britain’s boardrooms about what the future of work looks like and shaping views on the skills needed to succeed.

The vast majority of business leaders agree that skills such as communication, self-motivation and the reliability to work remotely are now essential (83%) and that demand for digital and IT skills will increase due to the rise in online and virtual working (85%).

In what is a challenging and changing jobs market, business leaders recognise the need to support young people looking for jobs. Over three quarters say they have a responsibility to ensure those leaving school in the current environment do not become a lost generation (77%), and that there is now an increased need for employers to support young people entering the world of work (76%).

Business leaders believe certain key skills and qualities will be vital in improving young people’s job prospects.

They highlight skills needs driven by a changing workplace shaped by lockdown. More than three in five (63%) say self-motivation, preparedness and the skills to work remotely will be very important and nearly three in five (59%) say digital and IT skills will be very important.

Three in five (60%) say essential employability skills such as presenting, problem solving, creativity and teamwork are very important – 58 per cent say literacy and numeracy are very important.

New ways of working create new challenges, with nearly three in ten (29%) believing the new remote working environment creates barriers to induction, training and learning the business culture and values, which could constrain the recruitment of school leavers.

John Yarham, Interim CEO of The Careers & Enterprise Company said:

The impact of the pandemic has forced business to adapt and adjust at pace. It has also accelerated many underlying changes in the economy and the way we work.

These changes in the nature and culture of the workplace are in turn shaping the skills and qualities employers look for in young people.

In such a landscape, careers education is critical in helping young people respond to change and matching their aspirations and ambitions with the opportunities in the jobs market.

The relationships and connections we create between schools, colleges and employers build a bridge between the worlds of education and employment and support young people in making informed choices about the next steps on their career journey.

The survey in numbers:

What impact do business leaders think the Covid-19 crisis will have on business?

  • 85% agree that online and virtual working will increase demand for digital and IT skills.
  • 83% agree that communication, self-motivation and reliability to work remotely will now be essential.
  • 83% agree that online and virtual working will remain a significant feature of the way they work.
  • 77% agree that fewer people in the workplace or office and more working from home will now become a permanent feature of working life.

How important do business leaders think the following qualities and skills are in improving young people’s employment prospects in the post-Covid jobs market?

  • 93% say essential employability skills such as listening, presenting, problem solving, creativity, leadership and teamwork are important – 60% say very important
  • 93% say literacy and numeracy are important – 58% say very important
  • 92% say self-motivation, preparedness and skills to work remotely are important – 63% say very important
  • 92% say digital and IT skills are important – 59% say very important
  • 89% say strong academic results and qualifications are important – 55% say very important
  • 89% say wider character behaviours like resilience and adaptability are important – 46% say very important
  • 86% say technical and vocational education qualifications are important – 41% say very important
  • 84% say relevant work experience is important – 46% very important 

Methodology: The Savanta ComRes poll for the Careers & Enterprise Company interviewed 251 business leaders from medium & large companies (i.e. with 250 employees or more) in the UK online between 26 June and 1 July 2020. 28% of business leaders interviewed were c-suite (MD, CEO, CFO), 23% director, 49% senior management. 25% of organisations employed 250-499 employees, 31% employed 500-1000 employees and 44% more than 1,000 employees. Savanta ComRes is a member of the British Polling Council and abides by its rules. Full tables are available on the Savanta ComRes website.