NICOLA Sturgeon has warned that the UK Government’s job retention scheme must be extended to avoid a “cliff edge” where more Scots jobs will be lost amid the Covid-19 economic shutdown.
The First Minister also stressed that Scotland must “guard against a reckless relaxation of lockdown measures" as suppressing the Covid-19 outbreak is the “essential foundation” for economic recovery.
Information from the Office of National Statistics (ONS) revealed that unemployment in Scotland increased by 4.6 per cent to 127,000 people between February and April – and is now at a higher level of the UK-wide unemployment rate of 3.9 per cent.
At her daily media briefing, the First Minister said the Covid-19 crisis has “created an economic crisis which demands our full focus and attention”.
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She added: "Difficult though all of this is, we must guard against a reckless relaxation of lockdown measures.
"If we ease measures too quickly and allow the virus to run out of control again, that would be economically counterproductive but would also cost many more lives."
The First Minister reiterated calls for the job retention scheme put in place by the UK Government to be extended.
She said: “We haven’t had any definitive indication from the UK Government that they are willing to extend but I very much remain hopeful that we will see a positive outcome to these discussions.
“These unemployment figures that are being reported today, are in themselves, deeply concerning. There is a danger that they mask the full impact of this crisis because many people will be in employment right now, they are not registering as unemployed, but their continuation in employment is dependent on the furlough scheme and the job retention initiatives.”
Ms Sturgeon added: “If that is withdrawn before it is safe to do so, the danger is we see unemployment rise even further than unfortunately we may already see in the next few months. Other countries have already given indications of continuation of similar schemes – France has said that will continue for a period of up to two years.
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“It’s really important that we avoid that cliff edge. While we want to see that support continue in general, I think it is reasonable to say there are some more detailed discussions about the particular sectors and in particular circumstances in which it is particularly important. We know that in Scotland, for example, tourism is harder hit and is likely to be hit for longer than some other sectors.”
Ms Sturgeon confirmed that on Thursday, she will announce the outcome of the next review into lockdown restrictions and said “I hope and expect” to confirm a move into phase two of the Scottish Government’s routemap out of lockdown. But the First Minister warned that not all measures will be put in place "overnight".
She added: "None of this will restore the economy immediately to full health but it will be a significant and sustainable improvement on our current position and that is, of course, important.
"That gradual re-emergence from lockdown is crucial, that is how we allow our businesses to start to operate and to make money again."
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