City will be one of ‘worst hit’ in world by the virus
Dire economic fallout predicted in report on businesses and jobs
BIRMINGHAM’S economy is likely to be one of the worst hit ‘‘globally’’ by the impact of the Covid pandemic.
Speaking at this week’s council cabinet meeting, deputy leader Brigid Jones (Lab) warned that several of the city’s key sectors were set to be hit hard, following a council report. She said: “The West Midlands is particularly vulnerable both socially and economically to Covid and the economic impact of that, and we are predicted to be one of the worst affected cities globally according to some of the research, with a severe contraction of GDP.”
BIRMINGHAM is predicted to be ‘‘one of the worst affected cities globally’’ by Covid-19, it has been claimed.
And the stark impact of the virus on the economy was revealed this week, with the region’s creative sector expected to lose 43 per cent of jobs this year alone.
Figures from the report showed that Birmingham GDP is expected to fall by seven per cent in 2020.
And up to 60 per cent of the automotive supply chain, worth £11 billion annually to the regional economy, could fail.
This week it was also revealed that one in three Birmingham workers had been furloughed by the end June – 147,800 in all.
Deputy leader of the council Brigid Jones (Lab) warned that several of the city’s key sectors will now be hit hard. She told a cabinet meeting: “The West Midlands is particularly vulnerable both socially and economically to Covid and the economic impact of that, and we are predicted to be one of the worst affected cities globally according to some of the research, with a severe contraction of GDP.
“And that is something we need to be planning for now.
“We’re looking at a severe hit to our higher education sector, which is highly reliant on the foreign student market.
“And our creative industry sector, which is one of the biggest in the country, is looking at losing around 43 per cent of jobs according to current projections.”
The report also highlighted the disproportionate impact the virus has had on more deprived areas as well as on BAME communities, disabled people and young people.
The death rate from Covid-19 for disabled males was 6.5 times greater than able-bodied people, while for females it was 11.3 times greater.
Cabinet member for Health and Social Care, Cllr Paulette Hamilton (Lab) said: “I have never known fear like it. We have commissioned community organisations to do specialist engagement with the BAME, the disabled and the LGBT communities, and carrying out a range of research and ethnographic studies to capture the lived experience of different groups.”