New research from innovation foundation, Nesta, finds 18-24 year olds are twice as likely to have been made redundant or furloughed than over 45s and similarly those earning between £20,000-30,000 a year are twice as likely as those earning over £30,000 to be in this situation.
The research also found that four in ten (40%) people who are currently out of work have been unemployed for over six months, with some groups of society particularly affected in the longer term. Men are more likely than women to be out of work for this length of time (49% vs 36% of women), as are disabled people (49% vs 31%) and those who are not university educated (42% vs 36%).
Lack of work or job security can have a significant impact on people’s mental health and sense of self-worth with three in ten (30%) saying the constant worries about work during the pandemic have affected their mental health. Meanwhile, four in ten (41%) of those who have been furloughed or lost their job during the pandemic say that their self-esteem has been impacted.
There are also the obvious financial consequences to being out of work. Across the UK one in five (19%) say they won’t recover financially from the pandemic for several years but this almost doubles (36%) for those who have been furloughed or made redundant.
There is an urgent need to help people who are out of work, or in insecure roles, find new job opportunities and access financial support. Nesta has today revealed six organisations, including not-for-profits, as finalists in its £3m Rapid Recovery Challenge, securing £150,000 each in funding to further develop innovative solutions that help people access jobs and financial support during the COVID-19 pandemic.
The six innovative tools are available now and include those that support young people trying to gain work experience as they first enter the labour market, support low paid workers to access earned wages early or alternative income sources (such as grants), and help homeless and disabled people to upskill, regain confidence and find secure work.
Tris Dyson, Managing Director, Nesta Challenges, said: “The jobs market has been entirely upended by the pandemic and although restrictions are starting to lift, there are still a large number of people who are furloughed or out of work - particularly among certain groups of society. There is an urgent need to get people back into work as soon as possible and prevent this becoming entrenched with all the mental and financial consequences that job insecurity brings. The Rapid Recovery Challenge’s goal is to help people find new work and work towards a positive financial future.
“While we have seen numerous innovations that aim to support those whose jobs and money have been impacted by the current crisis, we need to ensure that the solutions can reach those who need them most - quickly. We will be supporting the six finalists to scale their solutions at speed so they can reach and support as many people as possible, which in turn will provide both financial and job stability for many.”
The Rapid Recovery Challenge finalists are:
The Rapid Recovery Challenge, funded by Nesta with support from JPMorgan Chase and the Money and Pensions Service, is focused on supporting and scaling solutions from organisations and charities that will improve the job prospects and financial situation of people across the UK, from vulnerable to marginalised groups.
Jessica Ferguson, Co-Head of Global Philanthropy, UK, JPMorgan Chase, said: “It is critical for business, nonprofit and policy leaders to work together to address the disproportionate impact of COVID-19 on vulnerable people and families in the UK, and advance an inclusive economy. At JPMorgan Chase, we are doing our part by helping impacted people and households become more resilient, improve their financial lives and access the skills needed for stable, well-paying jobs.”
Michael Royce, Senior Policy and Proposition Manager, Strategy & Insights at the Money and Pensions Service said: “We are proud to be supporting this important initiative, which is looking to help rebuild the financial resilience of people most impacted by the pandemic, especially young people, women, ethnic minorities and workers on lower or more uncertain incomes.
“The coalition and innovative nature of this Nesta challenge very much reflect the ambitious goals that MaPS has set in its own UK strategy for financial wellbeing, in particular seeing 2 million fewer people using credit for everyday essentials, 2 million more people saving regularly and 2 million more young people receiving a meaningful financial education.”
Two final winners will secure £200,000 in September 2021 and, through the Challenge, Nesta’s goal is to grow and scale these ideas to reach one million people by 2023.
For more information, visit rapidrecovery.challenges.org/