Economics Observatory | Questions and answers about coronavirus and the UK economy

Growing pains

Young people have struggled during Covid-19. Missing school and being cut off from friends, together with anxiety over exams, essay deadlines or work, have left many suffering from poor mental health. The climate crisis appears to be deepening this effect.

Health, physical & mental

What does football reveal about the impact of Covid-19 on work performance?

Amid concerns about the potentially lower workplace productivity of people who have had Covid-19, evidence from professional football suggests that even six months after an infection, a player’s performance is reduced. Team performance also suffers from more players being infected.

Data stories

Inflation: what do the latest data reveal about UK prices?

UK inflation has risen to 3.2%, an increase that partly reflects the government’s Eat Out to Help Out scheme, which lowered the price of dining out last year and is no longer in the data. Sustained price rises and evidence of a tighter labour market create a policy conundrum for the Bank of England.

Aid & international development

How important is international cooperation in the vaccine rollout?

Early procurement and stockpiling of doses by wealthier countries has led to inequality in the vaccine rollout. International coordination and initiatives such as COVAX may offer a path to close the gap.

Inequality & poverty

Is the UK a meritocracy?

Many Britons believe that success is based on merit. But evidence shows that family background and economic circumstances play a key role in individuals’ opportunities to move up the social ladder. Underestimating the importance of these factors can reinforce existing inequalities.

Energy & climate change

What are the economic effects of extreme weather caused by climate change?

Human-made climate change is increasing the likelihood or intensity of extreme weather events. The costs of these disasters – and their effects on equality – are being underestimated, and greater urgency is required to implement mitigation policies.

Business, big & small

Update: Which firms and industries have been most affected by Covid-19?

Businesses across the UK have been negatively affected by the pandemic, but the damage has not been equal. Certain sectors and certain firms within them have suffered more than others – and many have faced highly uncertain futures.

Data Hub

Live and interactive charts and visualisations, making sense of the latest numbers

Recession & recovery

Will inflation take off in the UK?

Inflation is likely to rise from its current low level due to supply shortages and increased spending. The most probable outcome is a range of 2-3% a year, but it could go higher. Any increase above 3% should be temporary as long as fiscal and monetary policy are set appropriately.

Health, physical & mental

Update: How is coronavirus affecting the mental health of adolescents?

Young people’s mental health has suffered more than that of older age groups during the pandemic. There is a particular need for support for vulnerable children, teenagers and young adults to prevent existing inequalities in education and employment from widening.

Schools, universities & training

How can universities improve student satisfaction?

Student satisfaction has hit an all-time low and universities are trying to work out how best to respond. Maintaining elements of online learning may bring some academic benefits, but risks harming student welfare further.

Science, technology & innovation

What does the R&D response to Covid-19 tell us about innovation?

The response of scientific research to Covid-19 suggests the possibility of scaling up innovation to confront other deadly diseases as well as global challenges like climate change. Doing so is likely to require harnessing the power of public research institutions and broadening incentives.

News

A place of greater safety

Poorer countries remain a long way behind in the rollout of Covid-19 vaccines. Greater international cooperation is essential to ensure that everyone is safe – and to address the big post-pandemic challenges, notably global warming.

Jobs, work, pay & benefits

What is the future of working from home?

Working from home has become more common during the pandemic, but only in certain sectors. The likelihood that the practice will be permanently adopted depends on perceptions of workforce productivity.

Jobs, work, pay & benefits

What kind of government support might replace the UK’s job furlough scheme?

Furlough ends in September. What will happen to the millions of workers still on the scheme, especially those who are not recalled by their employer? What kind of support – in cash and job search assistance – is the government providing?

All Answers