Around one in three furloughed hospitality workers' jobs could be at risk, according to accountancy firm PwC.
Analysis by the firm suggests 32% of furloughed workers in the sector are at risk of redundancy by the end of the year.
Jing Teow, senior economist at PwC, said: "Part of the success of the furlough scheme and other fiscal and liquidity support was that it relieved working capital pressures faced by businesses, reducing the need to lay-off workers to free up cash flow or prevent permanent business closures. However, the projected decline in demand for workers as a result of weaker economic activity means that in the absence of further support, not all furloughed workers will have jobs to return to when the furlough scheme ends…
"In the short-term, there should be a focus on supporting those workers most at risk from Covid-19, helping them adapt their skills to enable them to shift to sectors that are growing. In the long-term the focus should be on upskilling the workforce to meet the new needs of a digital economy and skills that are more difficult to automate, and create a more resilient workforce for a post-Covid future."