Up to 12,000 people currently on furlough in Greater Manchester could lose their jobs when the scheme ends this week, a leading economic expert has warned.
Subrahmaniam Krishnan-Harihara, head of research at the Greater Manchester Chamber of Commerce, said a significant number of redundancies could be made in connection with Manchester Airport because of the impact the Covid-19 pandemic has had on the "valuable economic asset".
As of July 31, there were 68,000 people on furlough in Greater Manchester. The scheme is due to come to an end on Thursday, September 30.
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Mr Krishnan-Harihara's comments come as the chamber of commerce announced its Quarterly Economic Survey for the last three months.
The Greater Manchester Index increased by 1.5 points to 31.9 during the period, driven by a growth in consumer demand.
However, the survey also revealed that retail sales fell in July and August while business investment lagged.
In a briefing to BusinessLive, Mr Krishnan-Harihara added that there has been a "stabilisation in business prospects" over recent months but that Brexit challenges do remain despite an increase in international trade.
There has been an improvement in customer demand but there was a decrease in activity in the construction sector.
He added that the North West's economy is likely to take longer to recover compared to other areas such as London.
Mr Krishnan-Harihara also said that inflation and a shortage of labour was pushing up costs while a third of businesses in Greater Manchester are expecting to have to raise prices.
He also called on a "significant investment" in upskilling and reskilling the local workforce to help fill vacancies in the city region as well as mitigate the number of jobs that could be lost.
