The majority of young people – 58% – also experienced a drop in their income, compared to 42% for the rest of the working population.
With recent economic figures showing UK growth slowing as the second wave of the virus forces more severe lockdowns, LSE said its report also found that women, the self-employed and those who grew up in a poor families were more likely to experience unemployment and pay cuts.
Last week, Rishi Sunak said he was responding to the growing number of cases across the country and the closing of his leave program with the fourth major economic update in as many months.
He improved the successor to the leave scheme – the employment support scheme – making it more generous for employers forced to close in local lockdowns. Although business leaders and think tanks welcomed the move, they warned that the impact of the lockdowns could still lead to hundreds of thousands of job losses.
The Resolution Foundation said a report to be released later this week on the impact of Treasury support programs found that the Chancellor had failed to help many self-employed workers, especially those who were young and working in the economy of odd jobs.
The think tank said a program to help the self-employed weather the pandemic has handed over £ 1.3bn to workers who have not suffered any loss of income, while giving 500,000 people nothing unemployed, many of whom are young.
The authors of the LSE report warned that the specter of ’80s-style long-term unemployment is increasing, especially for those who are just beginning to find their way into the workforce.
In the report – Generation Covid: New Inequalities in Work and Education – they said the pandemic had increased the need for a job guarantee for those under 26 that would give them a base salary and training in course of employment.
“It is well known that young workers entering the labor market in times of recession suffer from a variety of consequences, which have an impact on incomes and employment for 10 to 15 years, and on others. outcomes, including general health and the likelihood of getting into crime, ”they said.
Fearing that the next generation of workers will struggle to acquire the skills needed in a post-pandemic labor market, they said: “There is also a real concern that people who have lost their jobs are heading towards trajectories leading to long-term unemployed. , the costs of which are significant. “
Inequalities in the workplace were also likely to worsen over the next decade, according to the report, with college students from poorer backgrounds losing 52% of their normal teaching hours due to the lockdown, while those in the higher income groups lost 40%.
Because of this disparity in teaching and other factors, university students are expected to change the way they find employment when they leave college.
Research found that 63% of respondents said the pandemic affected their well-being and 62% said it affected their long-term plans. Almost seven in ten said they believed their grades had been affected.