One-fifth of local firms are hit by job losses

One in five Perth and Kinross businesses have had to cut staff or are planning to do so as a result of lockdown.

A study of more than 1,000 local firms was undertaken as part of the region’s plans for economic recovery and growth.

The strategy, being drawn up by council chiefs and business leaders, aims to support local companies and highlights a need for diversification and a “swift transition to a digital economy”.

Unemployment across the area has rocketed during lockdown, from 2% to 4.8% – a total of 2,555 workers.

The council’s business barometer – which received responses mostly from the retail and tourism sectors – found that 20% of firms have already had to, or were planning to, cut their workforce.

Going out of business was the number one fear for just under 25% of companies, followed by concerns about travelling to work.

The 74-stage economic recovery plan suggests short, medium and long-term goals for a brighter future, with a recovery process that will take “many months, possibly years”.

The draft paper warns “some businesses may not survive the ongoing requirement to maintain physical distancing that will severely reduce their revenues”.

Councillors will be asked to back the paper and put it out to consultation before it is formally approved later this year.

A council spokesman said: “The scale of the challenge should not be underestimated and the impacts of job losses are already being experienced by many families across Perth and Kinross.”

Fishers Laundry was the first major employer to announce job losses in mid-May, followed by SSE/OVO, Pitlochry Hydro Hotel, Pitlochry Festival Theatre, Horsecross and the Crieff Hydro Group.

To tackle rising unemployment, an online recruitment hub will be set up to offer virtual job fairs and training. It aims to support 450 people over the next three years.

It also proposes offering incentives to help employers recruit and sustain young workers.

Tourism businesses could get local authority loans of between £10,000 and £50,000.