The effect of Covid-19 on the West Midlands economy

The West Midlands labour market has been sharply affected at the beginning of the pandemic, but its sectoral mix has allowed GDP to start recovering faster compared to rUK once the lockdown was eased. Trade in goods declined significantly in West Midlands due to its reliance on the manufacturing industry. Furthermore, a higher concentration of jobs in low-skilled occupations means that only a small share of employees in West Midlands can work from home.

Not o-K.. the shape of the recovery to come

Hope of a sharp bounce back – a ‘v-shaped’ recovery – have all but disappeared. The fear is that the recovery will be long leading to a ‘U’ or ‘bathtub’ shaped recovery.
But there is increasing evidence to suggest that an alternative ‘shaped’ recovery is on the horizon – a ‘k’ shaped recovery.