Hounslow is expected to be severely impacted by the economic impact of coronavirus, some of which is already being felt.
Independent research carried out by Oxford Economics forecasts the borough will be the second hardest hit in London, with a possible 40 per cent decline in output and thousands of jobs likely to be lost. A major factor is its proximity to Heathrow Airport and strong links to the aviation industry.
Some headline statistics and impacts, from various sources, include:
- 55,600 Hounslow residents are currently on furlough (38% of workforce) – second-highest proportion in London and fifth highest in UK.
- 47.7% of jobs in Hounslow are in severely impacted sectors, and 30.4% of businesses in severely impacted sectors
- 12,000 businesses have suffered negative impact, and 8,000 suspended operations during lockdown
- The reduction in activity at Heathrow could lead to a £1bn loss to Hounslow’s economy over three years - £480m in 2020, £410 in 2021 and £70m in 2022.
- 11,000 residents in jobs directly linked to Heathrow, and up to 43,000 in jobs associated with its ‘catalytic impact’ – one-third of the borough’s workforce
- Pre-coronavirus employment levels may not fully recovered until 2025
- Job losses will impact lower skilled, lower paid, young and 50+ residents most
- BAME communities, particularly Asian, are overrepresented in sectors severely affected by coronavirus
- 78% increase in the number of local residents receiving Universal Credit between February and July – there are now more than 35,500 people receiving Universal Credit
- The claimant count exceeded 16,000 people in August – a 143% increase on pre-Covid numbers