The Sentinel

‘THINGS ARE STILL GOING IN THE WRONG DIRECTION’

Concerns that end of furlough will lead to a rise in unemployme­nt

- Kerry Ashdown kerry.ashdown@reachplc.com

THE number of people claiming Universal Credit in Staffordsh­ire has more than doubled since the start of the coronaviru­s pandemic.

An economic bulletin presented to county councillor­s showed claimant numbers leapt by 14,415 – 119.6 per cent – in the county between March and July. In Stoke-on-trent, the number of claimants increased by 5,655

(77.3 per cent).

The authority is expecting to see a rise in unemployme­nt as the Government’s furlough scheme comes to an end this month. At the latest Prosperous Staffordsh­ire Select Committee meeting, members said the

Government should be urged to extend furlough measures beyond October.

The bulletin presented to the committee said: “The claimant count rate is still relatively low in Staffordsh­ire.

“However, it is young people, the lowest paid and part-time workers who continue to feel the impact of the economic shock the most. It remains vital that these groups are supported to help prevent them becoming long-term unemployed.

“Although unemployme­nt and those claiming benefits has not surged over more recent months, this is largely due to the considerab­le number of workers which remain on the Government­backed furlough scheme.

“There is concern that as the furlough scheme winds down and already-announced potential job cuts become a reality, there are likely to be more people out of work.”

Councillor Ian Parry, left, said: “We have had updates which seem to suggest things are still going in the wrong direction. In Staffordsh­ire, things have probably become a bit worse.

“The latest figures suggested we had one of the highest levels of furloughed staff across the West Midlands – almost 25 per cent of working-age population.”

Councillor Philip White responded:“we do have a large number of workers who are on furlough still.

“However, our unemployme­nt rate remains much lower than both the national and regional average.

“The question is whether that is a seasonal variation, with some unemployme­nt coming to an end that would happen in any year, or whether it is a trend. My view is the furlough scheme coming to an end is likely to see an increase in unemployme­nt.

“The question is what effect that has on the Staffordsh­ire economy and then, of course – crucially – what do we do to minimise the effects of Covid-19 and the end of furlough.”

Councillor White highlighte­d a number of schemes already in place to assist Staffordsh­ire businesses and workers – such as the redundancy task force group.

He said: “We have made £500,000 of emergency grants to micro-businesses to help them pay their bills in the short to medium term, we have provided PPE starter packs to another 2,000 micro businesses to help them get up and running over the summer.”

 ??  ?? JOB HUNT: Unemployme­nt in Staffordsh­ire is lower than the national average but young people are among those most affected by the ‘economic shock’.
JOB HUNT: Unemployme­nt in Staffordsh­ire is lower than the national average but young people are among those most affected by the ‘economic shock’.
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