The South West is facing a youth unemployment time bomb with union bosses calling for urgent Government help to prevent 83,000 jobs being put at risk particularly in leisure and hospitality businesses.
New analysis published by the TUC shows young workers - aged 25 and under- in the South West face the highest risk of unemployment due to the coronavirus crisis.
This is because there are more young people working in sectors disproportionately affected by the Covid-19 lockdown.
According to the analysis, the two sectors most affected are “accommodation and food” and “arts, entertainment and recreation”, with figures far exceeding the next most affected sector: construction.
Both sectors contribute considerably to the income of the region. The South West TUC has expressed particular concern for places such Cornwall, where the tourism industry is key to the success of the region and has been badly affected.
All these sectors employ large numbers of younger workers who now face long-term unemployment due to the pandemic crisis and the recession that is expected to follow.
The analysis suggests that, without urgent action, the South West may be on the brink of a surge in youth unemployment.
This is because 23% of all workers aged 25 and under in the South West work in accommodation and food, or arts, entertainment and recreation – compared to 6% for workers older than 25.
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That equates to 83,000 young workers in the region working in the two most affected sectors alone.
South West workers aged 25 and under are therefore four times more likely to work in one of the two sectors where jobs are at greatest risk.
In addition to lay-offs, recessions make it much harder for young people seeking to enter the labour market for the first time, as employers are doing much less hiring.
This is part of the reason why youth unemployment following a recession tends to be much higher than for other workers.
The TUC is calling for a job guarantee scheme that brings more good jobs into the region and avoids the misery of long-term unemployment.
With 83,000 young workers currently at high risk, the South West TUC said this scheme is a “no-brainer.”
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The proposed scheme for young workers would resemble the future jobs fund, which was part of the national recovery plan following the recession in 2008 that helped boost jobs and reduce rising unemployment.
Key features of the TUC’s proposed jobs guarantee scheme are that it supports additional jobs that would not otherwise be created by employers and enables work that benefits the South West, such as helping to decarbonise the economy.
The proposed scheme would also offer secure contracts of at least six months, pay at least the Real Living Wage, give training opportunities to help people move into longer-term work, and provide guaranteed access to trade union representation.
Alongside the job guarantee scheme, the TUC said the Government must work with businesses and unions to protect as many jobs as possible.
This should include extending the Coronavirus Job Retention Scheme for employers who cannot easily adapt to social distancing.
And ministers should form a regional recovery council alongside unions and employers, to design and deliver a recovery plan that protects and creates decent jobs.
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Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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Regional secretary for the TUC South West, Nigel Costley said: "We know it's a tough road ahead. But the more people in work, the faster we can work our way out of recession.
“Our regional recovery plan must be centred on good jobs – both protecting those we have and creating more. We need more jobs in social care, in green tech that our future depends on, in 海角视频 start-ups and more jobs in a revitalised manufacturing sector.
“Businesses are currently in survival mode; the government must get ahead of the coronavirus impact before it’s too late. We can’t let our young people be left to the misery of long-term unemployment.
“A job guarantee scheme is a no-brainer. It will help thousands of people who end up losing their job because of the coronavirus. If we make sure everyone has a decent job on a fair wage, we can recover faster and build back better."