Commenting on the latest figures on employment and pay, published today (Tuesday) by the Office for National Statistics, which show a fall in pay, a rise in the claimant count and a sharp fall in vacancies and hours, and PAYE data which shows continued falls in jobs and pay in April and May, TUC General Secretary Frances O’Grady said:
“The labour market is on red alert.
“We need strong action now to stop lasting economic damage. The government must work closely with unions and business at national and industry level to get the next steps right.
“The plan for recovery has to prioritise protecting and creating jobs. Getting people back into work is the only way out of recession.
“That’s why we need a job guarantee scheme to help those who lose work, especially young workers.”
TUC analysis published on Friday suggests that, without urgent action, the UK may be on the brink of a surge in youth unemployment.
The analysis found that the ‘accommodation and food’ and ‘arts, entertainment and recreation’ sectors are at the greatest risk of job losses. Both have much higher rates of furloughed workers, lost turnover, and paused trading than other industrial sectors.
They both also have the highest proportions of young workers, making a job guarantee scheme to prevent long-term youth unemployment a crucial part of the national recovery plan.
Of 4,352,000 UK workers aged 25 and under, 890,000 work in either accommodation and food, or arts, entertainment and recreation.
It means that 20% of workers aged 25 and under work in these two sectors, compared to 6% for workers older than 25.
Workers aged 25 and under are therefore three times more likely to work in one of the two sectors where jobs are at greatest risk.
Women workers aged 25 and under face the greatest risk of all. They are six times more likely than male workers over 25 to work in the highest risk sector, accommodation and food.
In addition to lay-offs, recessions make it harder for young people seeking to enter the labour market for the first time, as employers hire less. This part explains why youth unemployment tends to be much higher than for other workers following a recession.
- TUC research on young workers and unemployment is available at: www.tuc.org.uk/news/young-workers-three-times-more-likely-be-employed-s…
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