Senior labor market adviser Gerwyn Davies states that UK youth is suffering employment prospects as the recruitment rate is fallen drastically due to UK Coronavirus. However, the government is focusing on preserving existing jobs.
Many companies are hiring fewer graduates due to the pandemic and non graduate employment ratio has been affected for 23% negatively.
Economists see a scarri effect on people’s careers who are entering the labour market during the pandemic. The director of the Institute for Fiscal Studies, Paul Johnson said that university grads will start off their careers with low pays and will suffer scarring effects sooner or later.
Due to UK Coronavirus, many companies are now inducting new recruits online. Lloyd’s and Santander have canceled their summer internship program. HSBC delayed the joining dates of UK grads and interns whereas US investment bank Goldman Sachs also pushed the dates for internships.UK’s fifth-largest accounting firm also paused the recruitment for new trainees and canceled the summer internship program and 80% of the wages will be given to the staff of 700.
Deloitte, EY, KPMG and PwC – the top accounting firms have not disclosed any changes in their recruitment processes however they’ve cut the pata for their parents between 20%-25%.
PwC although cancelled the summer internship of 400 undergrads. However the students are offered a substitute which will include them in the grads program of 2021. The new recruits will be trained online and summer work experience will be offered online for 5,500 students.
Moreover, the hiring rate has declined in other industries as well where training isn’t much required such as retail, support services and restaurants. Small companies are also preferring to hire experienced people under such circumstances.
Davies said that every sector is suffering along with the people of all skill levels.