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More than 8,000 people across north-east face losing jobs as economy is hammered by pandemic

Union Street
Union Street

Aberdeen faces a looming tidal wave of job losses with potential redundancies expected to be more than four times that of Edinburgh and six times more than Glasgow.

The data, released as part of a new economic report, shows that Aberdeen topped the list of anticipated redundancy notices issued across Scotland between March and September.

According to the study, around 6,400 people in the city could be poised to lose their jobs as a result of the pandemic.

The figures, known as Partnership Action for Continuing Employment (Pace) notifications, are used to alert local authorities to rising job losses.

Aberdeen accounted for 35% of all notifications across Scotland.

Aberdeenshire, which was second on the list, is facing the possible loss of 1,838 jobs and made up 10% of all Pace notifications across Scotland.

It comes as job vacancies in Aberdeen have taken a nose dive since March as the city has experienced the double-whammy of an oil and gas downturn and a second Covid-19 lockdown.

Figures released last month showed that a collapse in local jobs in the offshore, hospitality, retail and arts and leisure sectors has resulted in a steep 75% fall in employment vacancies in Aberdeen – the worst in the UK.

Douglas Lumsden, co-leader of Aberdeen City Council and convenor of city growth and resources committee, said: “It worries me. Second place in that table is Aberdeenshire, which worries me as well.

“We’ll be using this report to go back to both government now and identifying that there is a need in Aberdeen for greater investment and greater help.

“Some of these figures have been coming through before Covid-19 and all the pandemic has done has meant that we need to increase the pace for some of these changes – and we need the help of both governments to try and bring that change around.”

Aberdeen City Council co-leader Jenny Laing added: “The Pace figures mean that jobs are under the threat of redundancy, but haven’t actually happened at that point.

“The whole point of the notifications is try and make sure we maintain that employment.

“Key to having that information is that we can take that to government to see if there is any way that they can bring in measures to prevent those redundancies taking place.”

The new Economic Policy Panel Report report also highlights the need for Aberdeen to lead the energy transition from oil and gas to renewable energy, while also increasing the “attractiveness” of the Granite City as a place to live and do business.

Professor Graeme Roy, director of the Fraser of Allander Institute (FAI) and head of the economic department at the University of Strathclyde, said that with the increasing concern over jobs posed by the Covid-19 crisis it was “absolutely crucial” that Aberdeen compete for big renewable energy contracts.

He said: “There are particularly unique challenges that Aberdeen faces as a result of this crisis.

“But we should say as well that there are particular strengths that Aberdeen had, prior to this crisis, that are different from other parts of the country as well.

“We do talk about how Aberdeen starts from a much higher base in terms of its economic prosperity relative to many other parts of the country.

“There are particular aspects of this crisis, through the impact on oil and gas and areas like tourism, which have a disproportionate impact.”

A Scottish Government spokeswoman said: “Aberdeen has been affected by the significant impact on the oil and gas sector of the COVID-19 crisis, compounded by the oil price shock and the fall in gas prices.

“We provided £1 million to Aberdeen City Council in August to help provide support to businesses affected by the restrictions in place at the time. We have also increased the grant funding available to businesses.

“We understand that Aberdeen City Council has not yet fully distributed the £1 million to local businesses and look forward to discussion with the council on how the remaining funds provided by the Scottish Government to support economic recovery will be used.”