More than 3,500 people in Argyll and Bute have registered for Jobseekers’ Allowance after ‘a substantial jump’ during the Covid-19 pandemic.
And the council’s head of finance fears that figure could rise further in a new report which also says that nearly one in five jobs in the area has been furloughed through the UK Government scheme, which will start to be wound down this month.
Interim executive director Kirsty Flanagan has also called for people to work together to minimise the economic impact of coronavirus.
The report will be considered by the council’s business continuity committee at its meeting via Skype on Thursday.
Ms Flanagan said in her report that the area had undoubtedly been hit very hard by the Covid-19 pandemic, with the council and its partners distributing £37m in business support grants.
“There has been a substantial jump in the job claimant count, with 3,500 people registered for job seekers’ allowances, and 18% of jobs in our region have been furloughed through the UK Government scheme that starts to be phased out in August and ending in October,” she added.
“While many people will hopefully return to their jobs, it is anticipated that others will not be able to return, as the business is no longer in operation or has downsized considerably to take account of the new economic reality that lies before us.
“It is therefore anticipated that many people will add to the claimant count and others may also have to move away from the area to find alternative work.
“It should be noted that the entire UK economy has been badly hit by the pandemic with a severe global recession now starting to emerge. How quickly it will recover remains a huge unknown at this time.”
While calling for a collaborative approach, Ms Flanagan also said that some things in Argyll and Bute were moving in the right direction as lockdown is eased.
She added: “Economic recovery from the situation we now find ourselves in will take an enormous international, national and local effort sustained over many months and years.
“Collaboration is the key, together with additional fiscal and policy support at a national level to tackle the issues pertinent to each region of Scotland.
“The economic recovery in Argyll and Bute has already started in line with the Scottish Government’s road map to recovery.
“Our local businesses are starting to operate again in our town centres and throughout Argyll and Bute, construction has re-started on many sites including our area regeneration, active travel and housing projects.”
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