New Report On Covid Impacts On Highlands And Islands
18th September 2020
HIE has published a new report into the impacts of COVID-19 on the Highlands and Islands.
The report shows a disproportionate impact on the region compared with other parts of the country, including a forecast decline in GDP of between £1.5bn and £2.6bn.
Martin Johnson, HIE's interim director of strategy and regional economy, said:
"As the region's economic and community development agency, we undertake and publish research and analysis on key issues.
"This report, therefore, builds on the information we have previously published on the different ways in which covid-19 has been affecting the region's economy.
"It will form part of the region's voice, feeding into the national picture and help inform our approach to supporting businesses and communities during the recovery.
"As anticipated, the report shows the road to recovery is a long one. This underlines the need to collaborate and innovate, and to draw on the many strengths this region has.
"Natural assets such as the marine economy, for example, are expected to generate many new economic opportunities in relation to the green recovery and drive towards the net-zero targets. It's crucial that businesses, communities, academic institutions and the public sector work together to make the most of these opportunities and rebuild our region's economy."
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LONGER TERM IMPACTS IN THE HIGHLANDS AND ISLANDS
Decrease in 2020 GDP in the Highlands and Islands between £1.5bn and £2.6bn.
Highlands and Islands recovery highly likely to lag Scotland in the
short-term (2020 and 2021) with full recovery not likely to 2023.
Economic scarring and loss of productive capacity may be evident for years to come.
Employment levels will reduce downwards to lower GDP levels -
which could lead to population decline as people seek employment elsewhere.
Job prospects for young people down.
■ With recruitment levels down there may be a lack of entry level positions opening up for young people
■ With unemployment levels up, young people will increasingly be competing against those who have already entered the labour market and will be therefore at a disadvantage.
The impacts of this are already starting to be seen with the unemployment rate levelling.
out but youth unemployment continuing to increase
‘The Impact of COVID-19 on the Highlands and Islands’ report in full is available on the Research & Reports page of [url=https://www.hie.co.uk/media/9646/the-impact-of-covid-19-on-the-highlands-and-islands.pdf]HIE’s website HERE[/url]