Monday, May 13, 2019

The Consequence of the Recession

The Resolution Foundation says those who entered the world of work between 2008 and 2011 bore the brunt of the sharp economic decline, when compared to young people entering work before or after the downturn.
"Low-skilled workers faced a higher risk of unemployment, while graduates were more likely to trade down the types of jobs they did, with their pay and prospects stunted as a result," said Stephen Clarke, senior economic analyst at the Resolution Foundation.
"These scarring effects have stayed with the crisis cohort for up to a decade, reducing their living standards at a time when they may be facing the additional financial strains of buying a home, or bringing up kids," he said.
Although unemployment did not rise as sharply as in previous recessions, in 2012 it was still twice the rate for the population in general, the report says.
Those who "trade down" to a low-paying occupation because they are struggling to find work rarely move into a higher-paying occupation, even after the economy has picked up, the report adds.

In 2018, analysis carried out for the BBC by the Institute for Fiscal Studies (IFS) showed that people in their 30s were earning £2,100 a year less than people in the same age group in 2008.

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