The IFS has warned evidence from previous recessions suggests young people graduating this year are likely to find it harder to find employment and even harder to find well-paid employment than their immediate predecessors.
If the economy struggles to recover quickly, they may also earn less than they would have previously expected for a considerable period of time.
The IFS added that the labour market this year is likely to be “substantially more difficult” than it was in 2008-09, following the global financial crisis.
The prediction came after a separate IFS study found young workers, those on low-pay and women would be most affected economically by Covid-19, as a “remarkable concentration” of those groups were employed in sectors which had been forced to shut down.
“Young people in work are suffering more than others as a result of the economic consequences of the lockdown and those still at school will see their education interrupted,” Paul Johnson, director of the IFS, said.
“Previous experience suggests that university graduates will start off in lower paying jobs than otherwise and will suffer 'scarring' effects such that they will be more likely to be unemployed several years after graduating.
“It will take several years before their earnings catch up with what they otherwise would have been.”
There seem to be little but bad news out there when it comes to what the effects of this global pandemic are likely to be. Once we move beyond the health crisis we are likely to be in the middle of a major economic one.
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