Despite the incredibly challenging circumstances facing the Scottish job market, there is optimistic news in the latest release of figures from the Office for National Statistics. The unemployment rate has remained steady at 4.4% and is still lower than the UK rate of 4.9%. This puts the number of people unemployed and looking for work in Scotland at around 120,000, making up roughly 7% of the 1.67 million people who are out of work across the UK.
The fact that this rate remains so steady is largely due to the success of the ongoing furlough scheme, which has proved quite effective in protecting jobs so far. The economy has also been given a boost by the success of the vaccination roll-out, which has allowed lockdown restrictions to be eased quicker than expected stimulating hiring demand.
In yet more optimistic news, the number of job vacancies advertised has seen a 50% increase from February to March putting them at their highest level since November 2019. A large part of this boost has come from some of the sectors that have been the worst affected by lockdown, such as retail and hospitality, as they prepare to finally open their doors next week.
Speaking in today’s Herald, s1jobs Commercial Director Gavin Mochan warns that some of these jobs may not be sustainable, “hospitality venues will remain under trading restrictions for an unspecified time to come, with indoor venues initially required to close by 8pm, and outdoor areas to shut by 10pm. Industry representatives have warned such conditions are not viable, with 24,000 jobs at risk.”
There is also some concern to be felt for the retail sector as the past year has seen a string of high-profile high street chains closing their doors for good. This sector will not have to deal with as many limiting restrictions as hospitality, but if consumers choose to stick with online shopping more store closures could be on the horizon.
With restrictions easing and the vaccination roll-out going strong, there is much to be optimistic about. Yet, as Mochan notes, “the extent of the damage will only be evident in the weeks and months to come as the economy reopens and government support winds down.”
You can read the full report on the ONS release on the Herald website and you can read the full analysis by s1jobs here.