COVID-19 will have a ‘scarring’ effect on the careers of young people

Economists have found a persistent “scarring” effect on the careers of people who enter the labour market during a crisis, with wages still lower on average as long as five years after starting work. Paul Johnson, the Institute for Fiscal Studies director, said: “Previous experience suggests that university graduates will start off in lower paying jobs than otherwise and will suffer ‘scarring’ effects such that they will be more likely to be unemployed several years after graduating. It will take several years before their earnings catch up with what they otherwise would have been.”

This comment was taken from The Guardian, 20th April 2020 (found HERE). Click HERE for the full update from Institute for Fiscal Studies regarding lasting effects on graduates.