The coronavirus pandemic has caused unprecedented economic damage.
Globally, too, the fallout from the pandemic has been dire. In contrast to the United States, many European countries have adopted large-scale economic relief programs designed to prevent mass unemployment. But as countries begin to emerge from lockdown, governments are beginning to wind down those job-retention schemes – a situation that could lead to a spike in layoffs.
Many jobs that people had before the pandemic are “not coming back,” Boris Johnson said recently. “We face a real, real crisis.”
The number of job losses across Europe, the United States, and other developed countries has been 10 times greater than during the first months of the 2008 financial crisis, the OECD stated.
“In a matter of a few months, the Covid-19 crisis wiped out all improvements in the labour market made since the end of the 2008 financial crisis,” Stefano Scarpetta, the OECD’s director of employment, labor and social affairs, said in a news briefing.
Young people – just as they enter the workforce – have been particularly hard hit by the economic impact of the pandemic, but the scale of the long-term impacts on them is only just starting to emerge.
Over the last decade, young people have increasingly occupied low-paid professions, especially in the hospitality and retail industries. These jobs have been among those most affected by the pandemic, according to a report released last week from the Institute for Fiscal Studies, a London-based think tank.
The economic repercussions are likely to last long after lockdown restrictions are lifted,...