Tuesday, August 18, 2020

Tougher at the bottom

Researchers at the London School of Economics (LSE) found that the most vulnerable groups in society have been hit hardest financially by Covid-19.

Low-paid workers are three times more likely than their well-off counterparts to have seen their hours halved during the coronavirus pandemic, according to a study.

People who are young, low-paid, black, in self-employment, those who have low education levels or live in large families have been disproportionately affected by the recession, according to the analysis.
Long-term scars to people’s prospects may be even deeper than in past recessions, the researchers wrote.
They calculate that scarring will disproportionately impact groups that are already relatively disadvantaged. For employees who were earning less than £151 per week in February, the probability of being furloughed or having their hours cut by at least half almost three times higher than for those earning more than £600 per week (53.7 per cent compared to 18 per cent).
Black workers have also suffered relatively more - around 42 per cent were estimated to have been furloughed in June compared to 27.6 per cent of the total workforce.
Similarly, younger workers have seen their hours and earnings cut. Those aged 18-24 who were still employed in June were almost 18 per cent more likely than those aged 35-54 to have had their hours cut by at least half or to have been furloughed.
Individuals with only GCSE qualifications or equivalent are 17.1 per cent more likely to have been furloughed or lost at least half of working hours compared with those with a degree.
Professor Bell said: “Some individuals will be affected harder than others. We find those most likely to become unemployed are the young, those with a lower level of qualifications, black workers and those on low pay."

No comments: