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Daily Record
Daily Record
Politics
Chris McCall

Nicola Sturgeon says rising unemployment in Scotland shows need to restart the economy

Nicola Sturgeon has said a rise in unemployment underlines the need to restart the economy as quickly as can be done safely.

The First Minister announced today that £33 million will go towards helping people back to work once lockdown eases, as she warned lockdown was creating an "economic emergency".

She said Scotland's current unemployment rate of 4.1 per cent was "relatively low" by historical standards - but warned the figures "do not reflect the full economic impact of the pandemic " as they only cover to the end of March.

The SNP leader was speaking after it was revealed that Ovo Energy is planning to cut 2,600 jobs across the UK - with more than 1,000 at risk in Scotland.

She said it was likely a number of companies would face "difficult situations like this" but stressed the Scottish Government would do what it could to help.

Speaking at her media briefing in Edinburgh, the First Minister said the overall rise in unemployment "undoubtedly further demonstrates the need to carefully get our economy moving again as quickly as we are able to do that safely".

Sturgeon added: "We know that the essential public health measures that we have had to take to deal with what is a public health emergency are in themselves creating an economic emergency."

Speaking about the new funding, she said: "We will be investing a further £33 million to support people back to work as we gradually get the economy opened up again."

She said most of the funds would go to the Fair Start Scotland scheme and will "have a particularly focus on helping those most adversely affected", including young people, disabled and lone parents.

The First Minister added: "We are determined to do everything we can to protect Scotland's workforce, to minimise as far as we can the increase in unemployment, and also to ensure that we are ready for a sustainable recovery."

Commenting on the latest unemployment figures, Scottish Secretary Alister Jack said: “As expected, the impact of coronavirus is now starting to show in the labour market statistics and will do for some time to come.

"The UK Government is doing everything in its power to protect the livelihoods of Scottish people during this unprecedented pandemic and will continue to do so.

“Our Job Retention Scheme has ensured thousands of people in Scotland continue to get paid while they are unable to work and this is in addition to the £3.7 billion package already given to Holyrood to help tackle the crisis.

"These actions mean the UK economy will be able to bounce back when circumstances allow.”      

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