Unemployment Scotland: Redundancy levels hit record high amid coronavirus layoffs

However, despite unemployment levels increasing in almost all areas of the UK, Scotland bucked the trend with a rise in employment rates between August and October this year. 

But the number of people claiming benefits has also risen to 214,200 in November – a rise of  87 per cent compared to the same time last year.  

Redundancies were up across the UK also, with figures showing 370,000 people lost their jobs between August and October, passing the previous all-time record of 317,000 in the three months prior. 

The figures have prompted concern from politicians, business groups and experts who have warned that there could be further job losses due to coronavirus restrictions, and the ending of the UK Government’s furlough scheme in March. 

The British Chamber of Commerce economic chief Suren Thiru warned that the furlough scheme may be masking the true scale of the problem. 

He said: “The re-introduction of tighter restrictions and the expected cliff edge caused by the original furlough scheme end date in October helped drive record redundancies.  

“While the furlough scheme will help safeguard many jobs over the winter months, with businesses facing the prospect of further restrictions and a messy end to the Brexit transition period, major job losses remain probable.” 

READ MORE: State payouts over redundancy failures to rocket due to coronavirus, lawyers warn

The Scottish Government said the figures “do not reflect the full impact of the coronavirus on employment” with the country facing “huge economic uncertainty” in the coming months due to the end of the Brexit transition period. 

The SNP has called on the UK Government to retain the £20 uplift to Universal Credit as a means of helping those on the breadline, while Scottish Labour insists that the Scottish Government must ensure support is getting to the right people, arguing it is not helping those most in need.  

Scottish Government business minister Jamie Hepburn said: “These figures still do not reflect the full impact of coronavirus on employment as the Job Retention Scheme has played an important role in supporting employers and employees. 

“We are also facing huge economic uncertainty as a result of Brexit and the UK Government’s decision to leave the transition period on December 31 in the middle of a pandemic and a recession. 

“However, the Scottish Government continues to support employers – and to help protect jobs – by making grants available to businesses impacted by Covid-19 restrictions.”  

Despite £280 billion being spent by the UK Government since the start of the pandemic on mitigating its impact, GDP is expected to take a hit of 11.5 per cent by the end of the year - the largest annual fall since the Great Frost of 1709. 

According to the Office for National Statistics, 4.2% of working-age people were unemployed in Scotland between August and October this year. This was lower than in the previous three months, but there were still 0.6% more people unemployed this year than in the same period last year.  

The percentage of people who were in work has risen in Scotland to 74.8%, up 1.2% on the previous three months, and up 0.3% on last year.  

In the UK overall the unemployment rate stands at 4.9%, while the employment rate fell by 0.9% on the year, and by 0.5% on the quarter, to 75.2%. 

Think-tank the Resolution Foundation said that governments across the UK would have to focus on job creation next year in an attempt to rebalance the economy. 

READ MORE: Scotland faces 'tidal wave of job losses' - while over 80 per cent of Scots unsure of redundancy rights​ 

Senior economist Nye Cominetti said: “Hospitality continues to be worst affected by Britain’s jobs crisis. 

“The extension of jobs support schemes will have protected millions of jobs and keep a lid on rising unemployment over the winter. But with vacancies still a third down on pre-crisis, and significant social distancing restrictions likely to be required well into 2021, unemployment will continue to rise in the new year. 

“The labour market priority for 2021 should be to support job creation, and maintain the stronger safety net for those who are struggling to find work.” 

Yesterday the Joseph Rowntree Foundation called for the Treasury to retain the £20 temporary increase to Universal Credit, insisting it was essential to help those most in need. 

Rebecca McDonald, senior economist, said: “Throughout the pandemic unemployment has risen most in sectors with high levels of low pay, like hospitality. The economic fallout from the virus is being shouldered by our poorest workers. This just isn’t right. 

“Whipping away this lifeline from families who are already struggling will pull many further into poverty and risk our economic recovery.” 

Alister Jack, the Secretary of State for Scotland, insisted the UK Government was “taking unprecedented action”. 

He said: “The UK Government continues to respond, taking unprecedented action to support jobs. 

“In the Spending Review last month, the Chancellor set out how we will work to ensure our economy  

recovers. Hope is on the horizon, with the UK Government procuring vaccines on behalf of the whole of the UK. Never has the strength of the Union and UK Treasury been more important.”