One in three young people has returned to work during the pandemic into a secure or atypical role, according to think tank the Resolution Foundation.
Its Leaving Lockdown report found that while many young people managed to secure work after the coronavirus lockdowns, they still faced a number of challenges in the labour market.
The think tank concluded that while support schemes such as furlough managed to keep a lid on youth unemployment, one in three 18- to 24-year-olds had experienced at least three months of worklessness during the pandemic, as did one fifth of 25- to 34-year-olds.
By October 2021, however, three-quarters (76%) of young people who were in work before the pandemic but workless during the winter lockdown had returned to work, it said.
But while the unemployment rate for 18- to 24-year-olds fell in the three months to November 2021 to 9.8% – compared to a pre-pandemic rate of 10.5% – many of these “returners” were working on temporary contracts, zero-hours arrangements, agency work or variable hours.
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Those who had experienced periods of worklessness were more likely to be in insecure work, it added. Thirty-three percent of these young people were now employed in atypical work, compared to 12% of young people who had worked throughout the pandemic.
The Resolution Foundation also found that the number of 18- to 24-year-olds who are economically inactive and not in full-time study (NEETs) increased, especially among young men, where numbers were up by 47,000 compared to spring 2021.
The impact on young people’s mental health should not be underestimated, the think tank said. Almost two-thirds of those who had been workless in the three months to October 2021 had experienced a common mental health disorder, compared to 51% of young people overall.
Young people who were looking for alternative work or an additional job were also likely to be suffering from mental health issues: 70% of those seeking an additional role experienced a mental health disorder, and 68% of those looking for alternative work.
Resolution Foundation economist Louise Murphy urged policy makers not to become complacent because employment rates are up.
“Young people were hit hardest by the economic impact of the pandemic, but have bounced back with a swift return to work, thanks in large part to the success of the furlough scheme,” she said.
“But policymakers and employers must not become complacent – problems persist for young people who are at risk of insecure work and economic inactivity.
“One-in-three young people who experienced worklessness during the last lockdown have returned to atypical contracts, which often means insecure work. The fact that they are more likely to be looking for new or additional work suggests higher dissatisfaction with their current jobs.”
Murphy added that simply returning to work was “not enough” for many young people.
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“Ensuring that young people have the confidence and knowledge to find and apply for work, and access to good quality jobs and sufficient hours, must be a priority for employers and policymakers in the months and years to come,” she said.
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