The economic impact of job losses in the civil aviation and aerospace engineering sectors

The coronavirus outbreak represents the greatest public health crisis in a generation. Whilst the health risk for the families impacted is the most important concern, the pandemic will have a significant economic impact.

One part of the economy particularly affected by Covid-19 is tourism-facing sectors. With borders shut down and aircrafts parked in airports from March of this year, there has been a significant knock-on effect to the civil aviation and aerospace engineering sectors.

The government’s Job Retention Scheme (JRS) has kept unemployment artificially low while the country is in lockdown however, as they begin scaling back the JRS, the number of job losses across the country will climb. Only now are we beginning to feel the real economic hit caused by the ongoing pandemic.

The purpose of this report is to estimate the economic impact that job losses in these sectors could have on the Scottish economy in terms of output, Gross Value Added (GVA) and employment.


Adam is an Economist Fellow at the FAI who works closely with FAI partners and specialises in business analysis. Adam's research typically involves an assessment of business strategies and policies on economic, societal and environmental impacts. Adam also leads the FAI's quarterly Scottish Business Monitor.

Find out more about Adam.

Mairi is the Director of the Fraser of Allander Institute. Previously, she was the Deputy Chief Executive of the Scottish Fiscal Commission and the Head of National Accounts at the Scottish Government and has over a decade of experience working in different areas of statistics and analysis.