One in ten Londoners are expected to lose their job by Christmas

By Lizzie May

Almost one in ten Londoners are expected to have no job by December this year, a report has found.

London’s unemployment total is expected to peak at 9.4 per cent, or 464,000 people, by the end of this year according to new forecasting commissioned by London Councils.

The research suggests a rising tide of job losses due to Covid-19’s impact at the end of the furlough scheme in September.

Analysis also found a ‘worst case scenario’ of unemployment hitting 11.8 per cent, or 580,000 people, by February 2022 if the recovery is more ‘sluggish’ than anticipated.

Produced by Putney-based economic consultancy Volterra Partners, the report looked at the pandemic’s current and future impact on Londoners.

London Councils’ Executive Member for Skills and Employment, Councillor Clare Coghill said: “The economic fallout from Covid-19 threatens a painful legacy of unemployment in the capital.

“This analysis paints a grim picture of worsening job losses. It’s hard to overstate how worried we are by these forecasts.

“Unemployment on this scale will have serious and long-lasting consequences, including widening London’s economic and social inequalities even further.”

The report also found that the 16-24 age group is set to be hardest hit by job losses, making up for around a third of unemployed Londoners.

Ethnic minority residents in central London are twice as likely to be unemployed, at 14.9 per cent, compared to white Londoners at 6.9 per cent.

Ellie Evans, senior partner at Volterra Partners said: “This work has highlighted the scale of the unemployment challenge we are likely to face here in London.

“The capital has persistently had more of its workers supported by furlough throughout the pandemic.

“We must not forget the entrenched inequalities facing certain subgroups of the population – targeted support to improve access for these groups, break down barriers and widen opportunities must remain at the forefront of policy making.”