Unemployment is expected to persist in London until 2023, report says UK News

Jobs in London may not return to pre-pandemic levels until 2023 despite strong economic growth this year, according to a new city hall report.

The GLA’s latest London Economic Outlook report found that while London’s economy rebounds as foreclosure restrictions are eased, unemployment will persist in sectors such as culture, hospitality and retail. detail due to the “negative shock” caused by the drop in international visitors.

London Mayor Sadiq Khan said he was “optimistic” that London’s economy will experience “high levels of growth” in 2021, but warned it was “essential” for the government to expand its support such as the vacation program, which is expected to end in September, and the business rate vacation, which ends in the summer.

Mr Khan said: ‘As the Covid restrictions continue to be lifted, I am optimistic that much of London’s economy will experience strong levels of growth this year, and we will rebound from this economic crisis as we did this with previous economic shocks.

“But what these new figures show today is that with international tourism and footfall likely not to return to pre-pandemic levels this year, jobs in several key sectors still remain at risk when the vacation program will end in September.

“I’m doing all I can to support jobs, including launching a huge national tourism campaign this month to support our businesses in hospitality, culture and retail – but it would be complacent. from ministers to suggest that employment levels will simply return to normal, even with the reopening of our world-leading eco-system of shopping, hospitality and cultural venues.

The new City Hall report found that London’s gross value added, a measure of economic productivity, is expected to rise 5.4% this year before rising to 6.9% in 2022.

But the number of labor jobs in the capital is expected to decline further this year by 3.6% before picking up slightly in 2022, increasing by 2.9%.

With consumer spending by overseas tourists in London falling by more than £ 7bn in 2020, and restrictions on international travel remaining in place, with jobs in retail, culture and travel. hospitality will likely remain at risk and employment levels are unlikely to return. at pre-pandemic levels until the second quarter of 2023.

Earlier this month, following his re-election as mayor of London, Sadiq Khan launched the £ 6million ‘Let’s Do London’ campaign to attract domestic visitors to London to ease the impact of restrictions on persistent international travel.

The campaign will aim to boost the economy of central London and the West End, with domestic visitor spending falling by £ 3.5bn in 2020 from the previous year.