“Cultural catastrophe” – over 400,000 creative jobs could be lost, with the UK creative industries projected to lose £1.4 billion a week in revenue in 2020.
The Creative Industries Federation has warned of a “cultural catastrophe” as newly commissioned research from Oxford Economics reveals that the UK’s creative industries are on the brink of devastation. The UK’s creative sector was previously growing at five times the rate of the wider economy, employing over 2 million people and contributing £111.7 billion to the economy – more than the automotive, aerospace, life sciences and oil and gas industries combined. Northern Ireland is projected to lose 20% (6,000) of its creative jobs and see a 23% (£300 million) drop in creative industries GVA (Gross Value Added).
The new report, The Projected Economic Impact of Covid-19 on the UK Creative Industries, projects that the creative sector will be hit twice as hard as the wider economy in 2020, with a projected GVA shortfall of £29 billion. Many creative sub sectors are expected to lose more than half their revenue and over half of their workforce. Despite the Job Retention Scheme, the report projects that 119,000 permanent creative workers will be made redundant by the end of the year. The impact on employment is set to be felt twice as hard by creative freelancers with 287,000 freelance roles expected to be terminated by the end of 2020.
Regionally, London is projected to experience the highest drop in creative industries GVA, seeing a £14.6 billion (25%) shortfall. However, Scotland and the North East are expected to be hit hardest relatively, with projected GVA decreases of 39% (£1.7 billion) and 37% (£400 million) respectively. 1 in 6 (112,000) creative jobs could be lost in the capital, with the West Midlands expected to be most impacted in relative terms, with 2 in 5 creative jobs in the region projected to be lost. The North West and South West will also be hit hard, with both projected to lose around a third of creative jobs. This could represent a major setback to the levelling up agenda, particularly in light of research from Cambridge Econometrics, released by the PEC/Creative England this week, which suggests that, based on recovery from the 2008 recession, creative industries outside of London may take much longer to ‘bounce back’ than those in the capital.
For further information, please contact Sophie Stott at the Creative Industries Federation on 07596 922457 / email@example.com