100,000 jobs to go across Scotland in downturn

Published on Sunday 5 July 2009 22:12

MORE than 100,000 jobs in Scotland will be lost during the recession, according to a report to be published this week.

The research, commissioned by Scottish Enterprise, warns that one in every 25 workers in Scotland will be out of a job by the end of the worst recession for a generation.

The document also warns it will take nine years before employment in Scotland returns to its 2008 high of 2.7 million jobs.

The research was conducted before more than 1,000 job losses were announced last weeks at Lloyds Banking Group and Diageo.

The report, drawn up by the country's main economic development agency, says: "The (Scottish] economy is heading into perhaps its sharpest setback period since the war… a return to jobs growth is expected from 2012 onwards, but employment levels are not expected to return to their 2008 peak until at least 2017."

It concludes: "There are forecast to be 106,000 fewer jobs in Scotland in 2011 than in 2008 as a direct result of the recession."

The biggest sector hit will be financial and business services, which will lose 36,600 jobs.

Retail and catering (28,500 jobs lost) and manufacturing (20,600 jobs) will be other big casualties.

The authors say Scotland will fail to match UK growth over the coming decade, meaning the recovery of the jobs market will be slower.

They say: "As the economy gathers pace, we expect economic growth in Scotland to fall once again behind the UK."