One in three workers in Perthshire furloughed

Figures for Courier Country reveal 33% take-up rate for employees living in Perth and Kinross

Perth and Kinross had one of the highest take-ups rates of the coronavirus furlough scheme, figures have shown.

One in three workers eligible for the scheme in Perth took advantage of it, the second highest in the country at 33%.

More than 22,000 of the 67,300 workers in the area took part in the programme.

Angus had an uptake of 29%, with 14,700 out of an eligible 50,500 taking part, while Dundee registered 17,700 on the scheme out of a possible 63,200 – 29% of the city’s workforce.

In Fife, 28% or around 45,000 people took up the furlough offer, from a possible 160,700 people.

Dundee City Council leader John Alexander said moves had to be taken now to mitigate the number of job losses which could occur once the scheme is removed in October.

The Highland Council area had the highest rate of uptake in Scotland, with more than 34% of the workforce there being placed on furlough.

More than 736,500 members of the Scottish workforce – around 30% – were placed on the scheme.

The take-up in England was also around 30%, at more than 7.6 million workers.

As the scale of Scotland’s furlough scheme plays out, the Scottish Government announced yesterday the economy had shrunk in the first quarter, with GDP reducing by 2.5% between January and March compared to October to December 2019.

The furlough scheme and countrywide shutdown was introduced on March 23, with the government noting the latest GDP figures for quarter one do not take into account the “large fall” in productivity monthly stats recorded in April.

GDP across the UK fell by 2.2% using the same comparative months.

In many instances, smaller businesses took-up the chance to furlough employees, according to the Federation of Small Business (FSB Scotland)

Andrew McRae, FSB Scotland policy chairman, said: “Employers in our big cities, small towns and rural areas alike have taken advantage of the UK Government’s furlough scheme. Similarly, firms across the country have benefited from the Scottish Government’s coronavirus support initiatives.

“While these lifeline schemes are imperfect – and we still look for policymakers to close gaps where they exist – they undoubtedly saved many firms and jobs during the difficult months of spring and summer.

“There is a long way to go and we are seeing a jobs crisis unfold before our eyes.

“After the last crash, nine in 10 unemployed people that rejoined the workforce did so via a small business or through self-employment. We want governments in Edinburgh and London to give these operators the tools to play their part in the recovery.

“That’s why any new jobs guarantee – as recommended by the Higgins review – must put smaller firms at its centre.”

Councillor Alexander said the full impact of the withdrawal of the furlough scheme was yet to be assessed, admitting he was fearful of how it would impact on the city’s future economy.

He said: “The figures illustrate the scale of the challenge facing all areas and how important financial support is for businesses during this global pandemic. The threat, both in terms of the health impacts and economic, remains and we cannot be complacent.

“What we do now will determine how many lives and jobs will be protected.

“We are yet to see the full impact of the gradual withdrawal of the furlough scheme and I remain worried and anxious about the impact of removing that support in its entirety.

“We must all do as much as we can to protect what we have, in terms of employment, in the longer term.”

Scottish Conservative MSP for Mid-Scotland and Fife Murdo Fraser called on the Scottish Government to do more for small businesses, saying: “These figures show the importance of the UK Government’s furlough scheme.”

“We are yet to see the full impact of the gradual withdrawal of the furlough scheme and I remain worried and anxious. JOHN ALEXANDER