Youth unemployment could soar by 600,000 this year because of the coronavirus crisis, a report warns.
The Resolution Foundation said young people鈥檚 prospects could be 鈥渟carred鈥 for years, causing long-term damage to their pay and job prospects, with the think tank stating 鈥渕ajor new support鈥 was needed to help 18 to 24-year-olds through the economic crisis.
Research from previous recessions suggested that young people who have just left full-time education are hit harder than other age groups.
The foundation has called on policymakers to help young people spend an extra six months in education.
Employment rates of graduates entering the labour market during this crisis are projected to be 13 per cent lower in three years鈥 time than they would have been, and rates for mid- and low-skilled workers risk falling even further - 27 per cent and 37 per cent respectively, said the report.
Kathleen Henehan, research and policy analyst at the Resolution Foundation, said: 鈥淭he 800,000 young people set to leave education this year amid an unprecedented economic crisis are facing huge immediate unemployment risks, and longer-term damage to their careers.
鈥淭he 鈥楥orona Class of 2020鈥 could face years of reduced pay and limited job prospects, long after the current economic storm has passed, unless the Government provides additional support - and fast.
鈥淎 new maintenance support scheme could help thousands stay in education and build up their skills, while those entering the labour market for the first time should be supported by a job guarantee offering critical employment experience.鈥
Alex Beer, of the Nuffield Foundation, which funded the research, said: 鈥淭he effects of the Covid-19 crisis are exacerbating existing inequalities.
鈥淚t is important that the Government, higher education providers and employers act now to limit the long-term effects of the economic downturn by creating opportunities for those entering work and training and supporting those who choose to stay in education.鈥
In a separate report, the Association of Colleges predicted that half of the new labour market entrants - around 100,000 16 to 25-year-olds - will struggle to find meaningful employment as the economic shocks of Covid-19 continue to be felt.
There are likely to be fewer jobs and apprenticeships for this year鈥檚 school and college leavers, it said.
The association also warned of major challenges in re-starting education and training after months of lockdown.
A Government spokesman said: 鈥淲e are doing everything we can to protect our economy and make sure there are options for young people leaving education.
鈥淎longside our 拢330 billion package of support for business, we鈥檝e launched a targeted employment campaign and a new online Skills Toolkit, helping to keep people learning and building their skills.鈥
In Hull, one construction and maintenance firm has been overwhelmed by the number of applicants for its apprentice intake for 2020.
KWL had planned an open day in April, with more than 150 candidates registering to attend the event.
The firm recruits around 10 apprentices each year, across the business in construction, the fleet workshop and administration departments.
It is moving the selection process through to July, retaining its commitment to 10 places.
Roger Grannon, chief operations officer at KWL, said: 鈥淭his is a worrying time for school-leavers who are missing out on the final year of their education. But we want to reassure candidates who are aged 16 to 19 that we will be progressing with the scheme, to ensure we are best-placed for the apprentices to start in September.
鈥淎t previous years鈥 events we鈥檝e had young people arrive with their entire family to find out about our apprenticeships. It鈥檚 great to see local parents and carers providing this level of support, encouraging young people into life-long careers.鈥
Apprentices have been welcomed since 2007, with intake widened. It has seen 158 full-time apprentices pass through, training to NVQ Level Three where achievable. At least 75 per cent are retained, with some going on to receive national recognition.
Coronavirus support:
New appointments are treated to an evening of celebration at the city鈥檚 Guildhall, presided over by the Lord Mayor of Hull. 鈥淥ur new apprentices and their parents meet the KWL directors and management yeam and we present their toolbox and tools,鈥 Mr Grannon said. 鈥淭his event marks the next stage in their lives, entering the world of work and adulthood. We always find it quite special ourselves.
鈥淚 started out as an apprentice electrician with Hull City Council and have seized opportunities to progress my career at KWL. We have the same in mind for every young person who comes to work with us, the opportunity is there if they want to take it.鈥
More women will be sought in 2020. 鈥淎t KWL we want to recruit the best and to do this we want to encourage everyone to apply, if they have an interest in these roles,鈥 he added. 鈥淎pplicants for KWL鈥檚 apprenticeships should achieve a minimum Grade Four in both Maths and English. We believe schools will be issuing expected grades in June.
鈥淭he recruitment process for apprentice positions will be opening shortly. We are finalising alternative arrangements for this year鈥檚 selection process and are looking forward to the successful applicants joining KWL later in the year.鈥
