Experts are warning that Covid-19 has created a ‘‘u-shaped crisis’’ as the majority of young people and pensioners have stopped working.
According to the Resolution Foundation’s annual Intergenerational Audit published last week (8 October), over half of those aged 18-25 and 65+ who were employed before the pandemic have since stopped working, either due to furlough or losing their jobs.
The foundation has warned both groups are at risk as furloughing ends and unemployment rises.
David Willetts, president of the Resolution Foundation, said: “The pandemic has already cost tens of thousands of lives, millions of people their livelihoods, and upended everyone’s daily lives.
“As hopes of a V-shaped recovery fade, our analysis reveals the reality is more of a U-shaped crisis, with young adults and young pensioners most likely to have stopped work or suffered mental health problems.”
He added: “For younger generations, this crisis has created wider problems. The growth of the high-cost, low-security private rental sector has led to missed housing payments and cramped living spaces during lockdown.
“It has also reinforced the underlying trends for younger people to have less wealth than young people did a generation ago, while increases in the value of houses and pensions particularly benefit older generations.”