Youth unemployment could rise by 600,000 this year because of the coronavirus crisis, new research by the Resolution Foundation warns.
The report, published today, says young people's prospects could be "scarred" for years, with long-term damage done to their pay and job prospects.
The think tank said major new support was needed to help 18- to 24-year-olds through the economic crisis.
Research from previous recessions suggests that young people who have just left full-time education would be hit harder than other age groups, says the report, with the foundation calling on policymakers to help young people spend an extra six months in education.
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The employment rates of graduates entering the labour market during this crisis are projected to be 13 per cent lower in three years' time than they would have been, and rates for mid- and low-skilled workers risk falling even further – 27 per cent and 37 per cent respectively, says the report.
'The corona class of 2020'
Kathleen Henehan, research and policy analyst at the Resolution Foundation, said: "The 800,000 young people set to leave education this year amid an economic crisis are facing huge immediate unemployment risks, and longer-term damage to their careers.
"The 'corona class of 2020' could face years of reduced pay and limited job prospects, long after the current economic storm has passed, unless the government provides additional support and fast.
"A new maintenance support scheme could help thousands stay in education and build up their skills, while those entering the labour market for the first time should be supported by a job guarantee offering critical employment experience."
Alex Beer, from the Nuffield Foundation, which funded the research, said: "The effects of the Covid-19 crisis are exacerbating existing inequalities.
"It is important that the government, higher education providers and employers act now to limit the long-term effects of the economic downturn by creating opportunities for those entering work and training and supporting those who choose to stay in education."
A government spokesperson said: "We are doing everything we can to protect our economy and make sure there are options for young people leaving education.
"Alongside our £330bn package of support for business, we’ve launched a targeted employment campaign and a new online Skills Toolkit, helping to keep people learning and building their skills.”
