The coronavirus crisis will exacerbate the already precarious financial situation faced by many students, and the damage could last years, Australian National University (ANU) higher education expert Andrew Norton has warned.
Professor Norton said casual employees in occupations with high exposure to the public faced immediate, medium- and long-term employment risks from the pandemic.
Students working as sales assistants, waiters and baristas had an elevated likelihood of catching the disease because they were in regular contact with people. And while the personal danger the virus posed to mostly young students was relatively low, infection could mean a period without wages for those accustomed to “living from pay-to-pay”.
Meanwhile, the prospect of widespread lockdowns such as those in China, France and Spain − with shops, cafes and restaurants closed to contain the outbreak − meant that the period without pay could be prolonged.
“A major concern here is that many firms in these industries will be bankrupted,” Professor Norton wrote in a blog post. “If so, it will take many years to rebuild this major source of student employment.
“Whether or not students get sick, they are among the most likely in the community to suffer financial hardship.”
Student financial need is an increasing concern in Australian higher education. Speaking at the Universities Australia conference in February, ANU vice-chancellor Brian Schmidt described it as “a hidden discrimination”.
The conference heard that the amount of student income provided in Australia had declined by about 20 per cent between 2014 and 2019, even though the number of students had increased.
However, some students’ work prospects could benefit from the crisis. On 13 March, the government announced that it would temporarily waive the 40-hour fortnightly work limit on international students employed to stack shelves at major supermarkets, to help ensure that stores remained stocked despite coronavirus-induced panic buying.
Professor Norton said students’ job opportunities and working hours could also rise in healthcare and social assistance. But citing figures from the 2016 census, he stressed that the main go-to jobs for students in their teens and twenties − sales assistants, waiters, bar attendants and checkout operators − all involved “routine interaction” with people.
He said 30 per cent of students who worked full-time were employed in accommodation, food services and entertainment − industries that would be “crippled” by bans on public gatherings, with casual staff “the first to go”. Another 28 per cent worked in retail, which would also be negatively affected.
He said 78 per cent of students who worked full-time did not have sick leave entitlements. While some big employers have vowed to pay casual staff for shifts missed because of coronavirus infection, many students work for smaller firms.
Professor Norton said the situation of international students was “of particular concern” because they were ineligible for income support and many had no family in Australia.
Meanwhile, some Australian universities are moving to reduce the pandemic’s impact on the personal finances of their own casual employees. ANU, Deakin and Monash universities are extending special leave conditions to their casuals, entitling them to up to a fortnight’s pay for pre-arranged work commitments that cannot be honoured because of self-isolation requirements.
Macquarie and Sydney universities have gone a step further, also vowing to compensate their casual staff for up to a fortnight in the event of campus closures.
