Impact of furlough
Extension of scheme could save thousands of jobs.
Extending the furlough scheme by eight months could save 61,000 jobs in Scotland, according to new research.
A Scottish Government report estimates that the direct cost of extending the furlough scheme in Scotland to June is around £850 million – and wider economic benefits, such as increasing GDP, mean that it could pay for itself.
It comes as the Business Impact of COVID-19 Statistics, also published yesterday, found that of all Scottish firms surveyed, over two thirds were still furloughing their workforce to some extent. The new data also estimated 15% of the workforce were still on furlough.
Economy Secretary Fiona Hyslop yesterday said:
“The UK Government must think again about withdrawing blanket support and they must urgently implement some form of extension which would continue to provide help for the sectors that have been most heavily affected.
“Extending the Job Retention Scheme for eight months would save 61,000 jobs in Scotland and help secure a stronger economic recovery from coronavirus (COVID-19). Unlike the Scottish Government, the UK Government has the borrowing powers necessary to fund the extension of the Job Retention Scheme and they must act now to protect jobs and livelihoods.
“New furlough statistics for Scotland published today show wide variation between different sectors of the economy. Even though in some sectors a significant number of people have gone back to work, the outlook is much bleaker in other sectors. In accommodation and food services an estimated 34.4% of staff were still on furlough, and this rises to 57.5% of staff in the arts, entertainment and recreation sector.
“Of course, the furlough scheme cannot continue indefinitely, but an extension would help keep people in jobs while sectors of the economy currently unable to fully open recover and will lead to sustained economic benefits at a relatively small cost.”
Latest News from
Scottish Fish Farm Production Survey 201919/10/2020 13:05:00
Marine Scotland Science today published the Scottish Fish Farm Production Survey 2019.
National Review of Eating Disorder Services: terms of reference19/10/2020 08:05:00
Terms of reference for the National Review of Eating Disorder Services which will provide a full picture of the current system of support that is available for those with an eating disorder, and their families and carers, in Scotland.
Public appointments: race equality action plan16/10/2020 15:05:00
Action plan to address the under-representation of people from a black or ethnic minority background in regulated public appointments.
Quarantine measures reinstated for further destinations16/10/2020 12:05:00
Travellers arriving from Italy, San Marino and Vatican City State must self-isolate from Sunday.
COVID-19 restrictions to remain16/10/2020 10:05:00
Further face covering rules announced and business support scheme to open.
Child Trafficking in Scotland: research15/10/2020 15:05:00
Research on the routes and circumstances of children and young people who have been identified as victims of trafficking and exploitation in Scotland, and their experiences of support services.
Coronavirus (Scotland) (No.2) Act 2020: Report on Marriage and Civil Partnership15/10/2020 12:05:00
Second two-monthly report to the Scottish Parliament on the steps taken to ensure that the solemnisation of marriages and registration of civil partnerships continues to be available and on the number of marriages and civil partnerships that have taken place during the reporting period.
Coronavirus (COVID-19): Route Map - supporting evidence for the 22 September review15/10/2020 10:05:00
Supporting evidence to inform decisions about timings of changes within Phase 3 as set out at the review point on 22 September 2020.