Disproportionate impact of crisis destroys hundreds of thousands of jobs in sectors such as hospitality

New research by Britain’s Resolution Foundation has found that as many as half of all U.K. workers experienced a sharp decline in pay in 2020, thereby negatively impacting living standards across the country.

The research, which was published today, showed that the fall in pay in real terms has extended the decade-long blight on living standards for around 14 million people. The data has identified the young as the hardest hit by the pandemic, highlighting the struggles and the plight being faced by this marginal group.

According to the Resolution Foundation, the new data contrasts with official data that showed a sharp rebound in average earnings following the first coronavirus lockdown in the UK last spring. The research group says the difference is due to the disproportionate impact of the crisis, which has destroyed hundreds of thousands of jobs in sectors such as hospitality where workers are typically young and low-paid.

However, Bloomberg reports that figures due to be released tomorrow are forecasted to show wage growth accelerating to a 13-year high, thus indicating that the average person still in employment is higher paid than before the crisis.

Study highlights big threat to young people

The Resolution Foundation highlighted a big threat to young people hit by the pandemic, which is likely to scar their prospects for years to come. The fact that weak pay is likely to continue beyond 2021, as firms emerge from the deepest slump for more than 300 years, the research group expects further hard times for people in this grouping.

According to the Resolution Foundation, “returning to employment growth and a tight labour market as quickly as possible, alongside continued increases in the minimum wage to support lower-paid workers in particular, will be crucial for boosting living standards as the recovery takes hold.