The UK education sector will be the most affected industry by the coronavirus lockdowns according to a new report by OBR. The report also lists other industries such as construction industries that will also see a significant drop in their revenues.
The spread of coronavirus in the UK is expected to affect certain sectors more than others. Education, hospitality and construction sectors will be among the most affected sectors.
A recent report by the Office for Budget Responsibility(OBR) said the economy of the country may shrink by 35 percent if the lockdown continues through April to June. The report also added that more than 2 million jobs will also be lost due to extended lockdowns in the country. The economic watchdog went further by highlighting some of the industries that will be most hit by the coronavirus lockdowns.
Education sector: 90 percent losses
At the top of the list is the education sector, which the OBR report said would plunge by 90 percent. The most affected institution within the education sector will be the universities. They have already seen lockdowns across the UK during the entire lockdown period.
Universities will also see a drop in international students enrollments in countries such as China. A lobby group Universities UK, put the figure of losses at £6.9bn in fee income from non-EU students coming to the UK for studies. These losses have also seen education sector staff working on precarious contracts terminated from their jobs, further increasing the number of people being laid off.
Food and accommodation industries: 85 percent losses
The Uk food and accommodation industry will also see huge losses according to the report. Hotels and restaurants have already closed down to protect their workers from the spread of the virus. This has seen millions of people who work in this industry affected by layoffs and furloughed salaries.
Economists have also said they doubt the industry will be able to recover lost revenues during this period of lockdowns. Once the economy is reopened, the sector will still be under immense pressure due to lost revenues and workers and will have to start all over again.
Other most industries affected
The OBR report also reported industries such as construction will see losses of up to 70 percent. Other industries that will see losses include manufacturing at 55 percent, Wholesale retail and motor trades at 50 percent, transport industry at 35 percent and real estate will see a decline of 20 percent.
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