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Another 15,000 Scots seeking work over lockdown | Another 15,000 Scots seeking work over lockdown |
(about 2 hours later) | |
Unemployment in Scotland rose between March and May as the impact of lockdown was felt, official figures indicate. | Unemployment in Scotland rose between March and May as the impact of lockdown was felt, official figures indicate. |
Scotland's unemployment rate rose to 4.3% in the period, a 0.6% increase on the previous quarter. This was higher than the UK unemployment rate of 3.9%. | Scotland's unemployment rate rose to 4.3% in the period, a 0.6% increase on the previous quarter. This was higher than the UK unemployment rate of 3.9%. |
Scots seeking jobs was up by 15,000 to 120,000. Twice as many left jobs and were not looking for new work. | |
However, the figures were not as high as many feared, due to the high numbers of people on furlough. | |
There are nearly 750,000 workers on the UK government's Job Retention Scheme. | |
Economists say the full effect on employment will not be felt until the scheme ends in October. | |
Because of the effect of the furlough scheme on the employment market, analysts say the number of hours worked per week is currently a truer reflection of the impact of the coronavirus crisis. | |
The figures showed a sharp decline of nearly 17% in the number of hours worked in May across the UK. After inflation, average pay was down by 1.3%. | The figures showed a sharp decline of nearly 17% in the number of hours worked in May across the UK. After inflation, average pay was down by 1.3%. |
The Scottish government's Economy Secretary Fiona Hyslop said the UK government's Job Retention Scheme will have offered "some relief", and called for the UK government to extended its furlough scheme. | The Scottish government's Economy Secretary Fiona Hyslop said the UK government's Job Retention Scheme will have offered "some relief", and called for the UK government to extended its furlough scheme. |
She said: "The Job Retention Scheme will end in October but we believe the UK government must extend the scheme, particularly for sectors that have been most affected by COVID-19, for example travel and tourism and hospitality, given that most of these sectors will not have fully recovered by October. | She said: "The Job Retention Scheme will end in October but we believe the UK government must extend the scheme, particularly for sectors that have been most affected by COVID-19, for example travel and tourism and hospitality, given that most of these sectors will not have fully recovered by October. |
Ms Hyslop added that the Scottish government had provided a package of support to businesses totalling over £2.3bn. | Ms Hyslop added that the Scottish government had provided a package of support to businesses totalling over £2.3bn. |
The number of people aged 16 to 64 in employment fell to 74.1% (2,642,000), a 1.2% drop on the previous quarter. | The number of people aged 16 to 64 in employment fell to 74.1% (2,642,000), a 1.2% drop on the previous quarter. |
The UK government's Chancellor Rishi Sunak said: "It's clear that we're in the middle of a severe economic downturn. | |
"I know people are anxious about losing their jobs and incomes. As I said last week, we will never accept unemployment as an unavoidable outcome, which is why I set out our clear plan last week to protect, support and create jobs. | |
"Our plan for jobs provides significant, targeted support where it is needed the most to ensure nobody is left without hope as we reopen our economy." |