SCOTLAND GETS

Just 8 per cent of staff are still on furlough scheme... but 587,000 have yet to return to office in person

SCOTLAND is finally getting back to work as the number of people who are on furlough has fallen to a record low.

Around 40,000 people ended furlough and returned to work in the last month.

The total number of people still being paid by the Treasury’s job retention scheme is now estimated at around 215,000.

The proportion of jobs on furlough leave was 8.1 per cent in the period from May 17 to June 13, according to the Office for National Statistics’ Business Insights and Conditions Survey.

This was down on 9.6 per cent last year and is the lowest figure recorded since the beginning of the pandemic.

But it also revealed that more than one in five employees are still working from home, raising further fears for the town centre businesses who rely on trade from office workers.

The reduction in furloughed staff came at a time when Scotland took more significant steps out of lockdown. Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: ‘The decline in the number of employees that businesses have been forced to furlough is a positive sign, as it indicates that the opening up of the economy is allowing businesses to start to reopen and recover as restrictions to trading are reduced.

‘It also clearly shows that the most effective way to protect jobs and businesses is to reopen the economy and allow businesses to trade again.

‘However, as restrictions lift, there are many businesses and sectors that have been forced to remain closed for prolonged periods of time and still do not yet know when they will be able to reopen fully, particularly those linked to our international travel and tourism sectors.

‘Our clear ask is for both governments to remove restrictions and allow businesses to trade freely once again. Until then, it is vital business support continues and the furlough scheme is extended.

‘Otherwise, we could see a job loss crisis looming just as they begin to recover.

‘It’s essential that businesses are supported at this critical time with long-term targeted financial support to allow them to recover from the devastating impact of the pandemic over the last 15 months.’

She said firms are also now able to plan to get staff back in the workplace after Nicola Sturgeon announced that the phased return of non-essential offices would begin on July 19.

Dr Cameron added: ‘The ability to return to the office will benefit employee morale and mental health and, crucially, it will also provide a much-needed economic boost to our town and city centre businesses who rely heavily on office workers’ footfall for trade.’

The analysis of the ONS figures, published by the Scottish Government, found that the share of businesses who say they are ‘currently trading’ is now 97.3 per cent, which is the highest figure since the beginning of the pandemic.

Based on latest employment figures, the 8.1 per cent of staff on furlough amounts to 215,000, down compared to 9.6 per cent, or 255,000, last month.

The arts, entertainment and recreation industry had the highest share of the workforce on furlough leave – estimated at 30.2 per cent.

Accommodation and food services had a big fall in the proportion of workers on furlough, from 30.9 per cent last month to 18.4 per cent this month.

Colin Borland, director of devolved nations for the Federation of Small Businesses in Scotland, said: ‘The furlough scheme has been a lifeline for thousands of Scottish businesses.

‘And as the scheme begins to wind down, and restrictions are lifted, it is unsurprising that the proportion of workers supported by the initiative has fallen.

‘But with certain sectors still facing very tough restrictions, policy makers have to be very careful.

‘We need to see ongoing help for those firms who still can’t trade or have seen markets collapse.’

The figures also show 22.1 per

‘Allow businesses to trade again’

cent of the workforce is still working remotely, compared to 23.2 per cent at the start of last month.

This amounts to around 587,000 employees working from home

Mr Borland said: ‘When government is still urging people to work from home if possible, it isn’t a shock that so many people are still working remotely. While some firms have adapted easily, others are keen to make a return to

‘Can’t undermine town centres’

premises at least part-time. How we work may well have changed for good, but we can’t undermine our town and city centres.’

A Scottish Government spokesman said: ‘As restrictions are removed we would expect the number of people on furlough to reduce, and we know businesses and workers are keen to get back to work safely as soon as possible.

‘As some restrictions remain in place it will take longer for some sectors to recover.’