Researchers: graduates will feel the coronacrisis for years to come

People who are now unemployed and students who graduate in the coming years are expected to suffer for years to come from the corona crisis. They have less chance of finding a job and if they find work, the salary is usually lower than before the crisis.

That’s what researchers from the Netherlands Bureau for Economic Policy Analysis say. The most important economic research institute in the Netherlands has already made several reports on the short-term economic consequences of the corona crisis, but has now looked at the long-term consequences in two studies. One study is about the labour market, the other about the Dutch economy as a whole.

In this way the researchers conclude that there is a good chance that the Dutch economy will not have fully recovered from the corona crisis in five years’ time. Although the economy will grow in the coming years, according to the prediction, it will not reach the level that would have been achieved without the corona outbreak.

Continence of vaccine is decisive

Investment, labour productivity and the labour market suffer most. Unemployment will rise in the coming years, but then fall again. In five years’ time, unemployment will be back to its old level, but some people will fall outside the boat and will find it difficult to find work again.

In the study, the researchers assume that there will be a vaccine against corona, or a medicine, within a year. If there is none, the damage to the labour market and the Dutch economy will be greater and longer lasting.