Closures were necessary but leave impact
A necessary part of the response to this pandemic was the closure of many businesses and premises at short notice.
This unprecedented economic shutdown was a key factor in limiting the spread of infection, but it came with huge consequences.
Throughout our communities people have faced difficult questions. Questioning when they might be able to return to work or even if there will be work to return to. Business owners asking how they can continue to protect their livelihoods. These questions have only become more pressing as time has gone on and the support available dwindles.
As we move through the stages of recovery we need to see urgent action to get people safely back to work and to protect jobs and incomes. Over these past few months hundreds of thousands of employees across Scotland have been furloughed, job vacancies have plummeted and a large rise in unemployment is looming.
The stark fact is that UK and Scottish Governments need to act now to prevent mass unemployment on a scale we have not seen for generations. We are facing a significant economic and social crisis and we cannot let our communities be left behind. Our Governments must invest to protect jobs and create opportunities or risk a lost generation of workers who will feel the consequences for the rest of their lives.
While the Job Retention Scheme has retained employment for many who would have otherwise faced redundancy, the decision to end this scheme in October could result in massive job losses and the potential collapse of businesses across Scotland. With more than half of firms expecting to cut their workforce as the furlough scheme winds down, consideration needs to be given to its extension. Particularly for those businesses unable to operate as a result of government guidance and restrictions. We also need to see a quality jobs guarantee scheme in place before it ends to protect the incomes of the thousands whose jobs are at risk.
This pandemic has shown that more than ever we need to see action to end precarious employment contracts and address low pay. A real commitment to jobs paying at least the living wage and offering decent hours, terms and conditions is essential to recovery, and to protecting our communities.
Summer in Scotland would normally be a boom time for hospitality and culture, with visitors from across the globe coming to experience our festivals and our country. While the reopening of many restaurants, bars and cafes has been welcome, the distancing measures in place mean these businesses are not able to trade at normal levels and this has resulted in workers being laid off. Over a quarter of a million people are directly employed in hospitality in Scotland, making a huge economic contribution, but for these jobs to continue longer-term support needs to be continued.
In the cultural sector we have seen gaps in support with individuals and organisations falling through the cracks. Some welcome funding announcements have been made but many remain unsure where or if they fit in terms of the pots on offer. The lack of overall strategy creates more questions than answers and promotes competition within a sector where we are seeing so many working hard to respond creatively to an unprecedented situation.
While across the economy we are facing huge challenges, key sectors like these are finding themselves under particular pressure. The economic challenge we face should not be underestimated, but by investing now to protect jobs, to create opportunities and to support our communities we will be best placed to recover.