Scots jobless rate at 4yr-high amid fears for furlough
SCOTLAND’S dole queue numbers are at a four-year high as businesses struggle through the coronavirus crisis.
Official figures show there were 128,000 unemployed people over the three months from May to July – 1,000 higher than in the previous three months and 19,000 more than in the same period last year.
The unemployment rate of 4.6 per cent contrasts with 4.1 per cent across the UK, adding to concerns that Scots are being hit hardest by the Covid turmoil.
The number of people signing on is higher than in any other three-month period since October-December 2016.
Business leaders also fear an avalanche of job losses when the furlough scheme finishes at the end of next month.
The true impact of the Covid-19 crisis could be even higher than the official unemployment rate, as the figures show the total ‘claimant count’ rate – including those who receive universal credit principally because they are out of work but looking for a job – has more than doubled, from 111,000 in August 2019 to 226,000 last month.
Scottish Secretary Alister Jack said: ‘The UK Government has done everything possible to support people through this difficult time. Through the furlough scheme, the UK Government has supported more than 930,000 Scottish jobs, a third of the workforce, and we are taking decisive action though our ambitious Plan for Jobs.’
The number of people in employment in Scotland also fell, from 2,652,000 in February-April to 2,650,000 in May-July.
Under the job retention scheme, 779,000 Scots jobs have been furloughed, while around 157,000 self-employed people in Scotland received UK Government support to compensate them for lost earnings.
Separate figures published by the Treasury yesterday showed the proportion of UK workers on furlough leave declined from 30 per cent at its peak in May to 11 per cent by mid-August. However, the Treasury was unable to confirm figures for Scotland.
Scottish Conservative economy spokesman Maurice Golden said: ‘Every part of the UK is suffering from the damaging economic effects of the pandemic but it’s worrying to see people and businesses in Scotland seem to be hit the hardest.
‘Scottish Tory leader Douglas Ross has outlined a bold and ambitious blueprint to create jobs and rebuild Scotland’s economy stronger. We need to see a similar level of ambition from the SNP if Scottish jobs are to be protected.’
Dr Stuart McIntyre, head of research at the Fraser of Allander Institute, said the weakening of the UK labour market was ‘well under way’.
He said that when the furlough scheme ends, ‘many more firms will be making difficult decisions about their workforce needs’.
Dr McIntyre added: ‘This will result in substantial upheaval in the labour market.’
The Federation of Small Businesses Scotland called on ministers in Edinburgh and London ‘to ensure they’re giving local businesses the tools they need to retain workers and to create jobs’, while Tracy Black, CBI Scotland director, said: ‘Rising redundancies, creeping unemployment and a record fall in the number of young people in work are clear warning signs. A successor to the Job Retention Scheme is needed.’
Business Minister Jamie Hepburn said the SNP’s Programme for Government ‘has protecting and renewing Scotland’s labour market at its heart through our new National Mission to create new, good, green jobs’.
‘We need ambition from the SNP’