More young people are in ‘insecure’ jobs following the pandemic, study finds

Access to good quality jobs must be a priority for policymakers, think tank says

One in three 18 to 34-year-olds have returned to insecure work (Getty Images/iStockphoto)

One in three young people have re-entered the workforce following the pandemic by taking up “insecure” jobs, according to a new report.

Those who were unemployed during the pandemic are more likely to now be in atypical work, such as on temporary contracts and doing agency work, British think tank The Resolution Foundation has found.

A study of 6,100 adults found that 33 per cent of young people who experienced joblessness during the pandemic are in insecure jobs, compared with 12 per cent of people who worked throughout the pandemic.

By October 2021, three out of four young people who were jobless during lockdown had returned to work.

As a result, the unemployment rate for 18 to 24-year-olds in the three months to November 2021 fell to 9.8 per cent, below its pre-pandemic rate of 10.5 per cent.

The foundation reported that problems persist even though unemployment is now lower than pre-pandemic levels.

It found that although the government’s furlough scheme was successful in protecting jobs, it did not prevent long periods of worklessness during the pandemic, “which could scar [young people’s] employment and pay prospects in the longer term”.

Additionally, the proportion of 18-24-year-olds who are both outside of full-time education and unemployed slightly worsened in the past year, from 8.8 per cent in May 2021 to 10.2 per cent by November 2021.

The Resolution Foundation said both issues are associated with higher-than-average mental health risks.

“Young people were hit hardest by the economic impact of the pandemic but have bounced back with a swift return to work, thanks in large part to the success of the furlough scheme,” Louise Murphy, an economist at the Resolution Foundation said.

“But policymakers and employers must not become complacent. Problems persist for young people who are at risk of insecure work and economic inactivity.”

Murphy said an increasing amount of young people are likely to be dissatisfied with their current jobs.

“A return to the workplace, on its own, is not enough. Ensuring that young people have the confidence and knowledge to find and apply for work, and access to good quality jobs and sufficient hours, must be a priority for employers and policymakers in the months and years to come,” she added.