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Monday, August 15, 2022

Jobs Warning Grows as One in Three Firms Plan for Cuts

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The UK government must “rethink its rash and reckless” plan to wind down its furlough scheme, the SNP has said, after a new survey revealed that around one in three employers expect to make job cuts this autumn as the support scheme draws to an end.

The research by the Chartered Institute of Personnel and Development (CIPD) and Adecco, the recruitment firm, found that around 33% of the 2,000 firms polled said they expected to make redundancies.

The findings in the period leading up to the start of July also showed a 50% increase in the number of employers planning for job losses compared to three months ago.

The stark warning comes as around 10,000 job losses were recently announced at leading companies including Travelex, WH Smith, Pizza Express, Hays Travel, Dixons Carphone, M&Co, LGH, DW Sports, Aecom, Prestwick Airport, William Hill, and Sodexo.

Commenting, SNP Shadow Chancellor Alison Thewliss MP (pictured) said:

“With each week that passes, the threat to thousands of jobs across the UK grows – with new research today revealing that around one in three firms are expecting to make redundancies as the UK government’s furlough scheme is prematurely wound down.

“In the past few weeks alone we have witnessed a worrying number of employers announcing cuts to jobs as the economic impact of the health crisis continues to take its toll on firms.

“The Tory government must take the growing threat to jobs seriously otherwise it risks a tidal wave of job losses that will push many more people into hardship, and businesses will be forced to pull down their shutters for good.

“If the UK government is serious about protecting jobs and people’s livelihoods then it will urgently rethink its rash and reckless decision to cut crucial support through the furlough scheme – and instead extend support into 2021 and devolve the powers Scotland needs to respond to this unprecedented crisis.

“Without these powers Scotland will be left with one hand tied behind its back.

“It’s clear that if the Tories at Westminster refuse to take the necessary steps then Scotland must be given the additional financial powers needed to take forward an investment-led recovery that protects jobs.”

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