Graduates will be some of the worst-hit by the crisis, warns economist
G R E A T
Students graduating this year will be less likely to find work and more likely to be in lower-paying jobs, a new report has said.
Despite this, there is little point in tuition fees refunds, argued the Institute for Fiscal Studies, saying the silver lining of these lower earnings is that grads will pay back less of their income-contingent loans.
If there isn’t a sharp recovery, grads are likely to feel the pinch for many years, said Paul Johnson, the IFS’s Director: “One group may end up suffering even more, and that is the group of young people looking to enter the labour market for the first time this year.”
Graduating during a recession is bad news on two fronts: Young people are more likely to work in sectors affected by the shutdown, and those looking for jobs for the first time face a double threat of unemployment and reduced earnings.
Two thirds of grads looking for jobs have already had schemes cancelled or put on hold, according to a survey by Bright Network.
“Those graduating this year can expect to find it harder to find employment and, especially, harder to find well-paid employment than did their immediate predecessors,” writes Johnson.
“Especially if the economy takes a long time to return to trend, they can expect to earn less than they might have expected for a considerable period of time.”