State of the Nation: Crisis intensifies for employers and workers

The crisis facing Scotland’s employers and workers is intensifying as the COVID-19 crisis continues, according to SCDI’s latest State of the Nation briefing for July.

Key statistics

  • Scottish GDP contracted by 2.5% in Q1 as lockdown began.
  • Scottish GDP may have shrunk by a massive 18.9% in April, as UK GDP contracted by 20.4%.
  • OECD predicts UK to be worst-hit country in the developed world.
  • KPMG forecasts -6.8% GDP growth in Scotland in 2020. Aberdeen (-8.6%) and Aberdeenshire (-8.5%) expected to be worst-hit regions.
  • Scottish economy may not recover to pre-pandemic levels until 2023.
  • 1 in 5 Scottish SMEs have adopted new digital technologies during the crisis.
  • 628,000 workers have been furloughed in Scotland.
  • Unemployment is estimated to be around 7%, nearly double the pre-pandemic, record-low jobless rate. Threats of mass redundancies in worst-hit sectors.
  • Number of online job vacancies in the UK has halved.
  • Indications of deterioration of physical and mental health and wellbeing of workforce. Before the crisis, significant minorities reported that their job had a negative impact on their physical health (25%) and mental health (30%).

For more, download our latest State of the Nation briefings below, which gathers all of the latest data and forecasts in one place.

Downloads

State of the Nation - July

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State of the Nation - June

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State of the Nation - May

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