We investigate how the COVID-19 pandemic has affected the early careers of young people who recently entered the labour market.
There is substantial evidence from the UK and other countries that entering the labour market during a recession leads to persistent negative effects on employment and earnings (von Wachter, 2020). Young people graduating from school or university during an economic downturn have a harder time finding employment, and those who do find work may be forced to take jobs that are less well-suited to their skills and the development of those skills. This can keep them on poorer career trajectories for years to come. The lack of new job vacancies also hampers the ability of young people to move between jobs in search of a better match, which has been shown to be an increasingly important way for young people to advance their careers and increase their pay (Blundell et al., 2020). The disruption caused by recessions leaves persistent scars for new labour market entrants, which can take several years to recover from (Cribb, Hood and Joyce, 2017).
