Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Coronavirus lockdown to hit low-paid, young and women hardest, warns IFS

Coronavirus lockdown to hit low-paid, young and women hardest, warns IFS

Low earners seven times more likely to work in sectors worst hit by shutdown, study finds
The low-paid, young people and women are likely to be the hardest hit by the coronavirus shutdown of businesses including restaurants, hotels, pubs, retailers and transport services.

Low earners are seven times as likely as high earners to work in a business sector that has shut down, according to the Institute for Fiscal Studies. The body’s analysis found a third of the bottom 10% of earners worked in the worst-hit sectors, against one in 20 (5%) of those in the top 10%.

Tim Roache, the general secretary of the GMB union, said: “This outbreak has shone a light on those left with more month than money. It’s confirmed the damage done by the proliferation of zero-hours agency work and bogus self-employment during the past decade. There can be no return to business as usual after this crisis.”

Workers aged under 25 are about two and a half times as likely to work in a sector forced to suspend trade. Companies closed under the government’s social distancing measures employed nearly a third (30%) of all employees under 25, not including full-time students who also have a job. This compares with just one in eight (13%) of workers aged 25 and over.

Women were about one-third more likely than men to work in a sector that has been shut down, as they make up the bulk of retail and hospitality workers. One in six female employees worked for businesses hit by the lockdown, compared with one in seven of their male counterparts..

Xiaowei Xu, a senior IFS research economist and an author of the briefing note, said: “There is a remarkable concentration of younger and lower-paid workers in the sectors most affected by the current lockdown. Women are also more likely to be affected than men.


Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk
“Fortunately, in the short run, many will have the cushion of the incomes of parents or other household members. But for the longer term there must be serious worries about the effect of this crisis on the young especially and on inequality more generally.”

The study found that 61% of under-25s who worked in shutdown sectors lived with their parents and tended to contribute a relatively low proportion of household income on average, at 16%.

The figures delineate the pain for millions of workers whose jobs are at risk after weeks of enforced closures intended to slow the spread of the virus. While many will continue to be paid, with a 20% pay cut, under the government’s furlough scheme, it is already clear that thousands will be made redundant.

Last week it emerged that nearly a million people had successfully applied for universal credit in the first fortnight of the lockdown.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×