A quarter of jobs in Edinburgh ‘at risk’ in virus fallout, report warns
More than a quarter of Edinburgh’s economy is considered “at high risk” or in sectors “most exposed” to the coronavirus pandemic, figures obtained by The Scotsman show.
During the Covid-19 crisis, the city has seen a faster growth rate for unemployment benefit claimants than any other part of the country.
There were 10,600 new claimants who signed up for benefits between March and May 2020, a rise of 146 per cent since the beginning of lockdown. Overall, the city has also seen 58,400 workers furloughed by the end of May, and almost 100,000 jobs in Edinburgh are in sectors rated as “high risk” to medium-term coronavirus-related disruption, representing more than a quarter of the city’s economy, a council briefing told councillors.
Of the jobs “at highest risk”, 36,000 are in retail, 33,000 in hospitality, 11,000 in the arts and entertainment sector, and 9,000 jobs in both construction and manufacturing.
The figures have been described as “stark and
sobering” by councillors, with calls for people to “think big and think brave” to avoid an impact on the wider Scottish economy.
Mary Alexander, deputy regional secretary of the Unite union in Scotland, described the news as “deeply troubling” for Scotland’s economy.
Edinburgh Liberal Democrat councillor Kevin Lang called for “fresh thinking” and a focus on job retention in the short term and job creation in the long term.
He said: “These are stark and sobering figures and show just how exposed Edinburgh is to the economic downturn. We have gone from having almost full employment to a situation where a quarter of local jobs are considered at high risk.
“We clearly need fresh thinking and a new partnership between the council, governments, businesses and the third sector if Edinburgh is going to weather this economic storm.”
The city’s Conservative group chairman Jason Rust said the pressure was now on the Scottish Government to work “collaboratively” with the UK government to ensure a strong recovery.
He said: “These are startling figures and show the scale of the challenge that lies ahead. Locally, the preparedness of Edinburgh as a local authority and its engagement with business and employers is also vital.
“The city vision for 30 years’ time will come to nothing if the stark reality of the economic position now is not urgently addressed. It is clear that many key sectors in Edinburgh are facing a massive hit, with all the social costs that also entails for local families.”
Edinburgh Council leader Adam Mcvey, of the SNP, said more than £100 million in support for businesses had been provided to help them battle Covid-19 and added the city was looking at “revitalising” its Edinburgh Guarantee scheme which helped provide jobs for young people after the financial crash of 2008 and 2009.
He said: “It has been crucial to plan for the citywide challenges which we know lie ahead and mitigate them as much as possible.
“Despite these efforts we’re already seeing unemployment rise and are looking at revitalising our Edinburgh Guarantee scheme, which successfully lifted thousands of young people out of unemployment and into jobs, training and education in the aftermath of the financial crisis.
“We want to extend this work to support people of all ages who might face barriers in the months and years ahead.
Ewan Aitken, the former leader of Edinburgh City Council, warned that unless people “think big and think brave,” the repercussions would be felt not just across the city, but the entire country.
He said: “Edinburgh is one of the key drivers of the national economy, and tourism is a key part of that. The city is a gateway for people coming into the country, and if we don’t grab hold of these problems, we’re in deep trouble.”
Ms Alexander echoed Mr Aitken’s concerns about the structure of the city economy and said its current precarious state was “very troubling” for Scotland as a whole.
“We are dealing with horrendous job losses already, such as at Edinburgh Airport, and it’s catastrophic for the economy,” she said.
“The pandemic has exposed inequalities in the system, and the precariousness of employment.
“If you look at the hospitality sector in Edinburgh, which has virtually collapsed, there are massive swaths of people who were on zero hours contracts and very low wages, and who are now really struggling.”
Tracy Black, director of CBI Scotland, also said the need to protect those jobs under threat was paramount.
She said: “While further easing of lockdown measures will come as a relief to businesses across Scotland, many firms are already fighting just to keep the lights on.”