Youth unemployment figures rose dramatically last month in Dundee, according to latest figures.
The new data for the Dundee East constituency reveals that the number of benefits claimants rose from one in 20 young people in March to more than one in ten last month alone.
Stewart Hosie MP, who represents the area, said: “In line with Scotland and the rest of the UK youth unemployment has been rising very quickly during the Covid-19 crisis. In one sense that’s not surprising.”
There were 3,245 claimants aged over 16 in the constituency last month, while claimants aged 18 to 24 years accounted for 770 cases.
The total population of people aged 18-24 is 6,957, representing a rise from 6% to 11% unemployment in that age group.
The rise has been attributed to a lack of jobs in the tourism and hospitality industry, which has struggled to combat the economic impact of Covid-19.
Mr Hosie added: “The good news is that many people had their salaries furloughed but as we come out of lockdown it is vital that every sector, especially the hospitality industry is able to recover and recover robustly.
“The Scottish Government has been calling on the UK government to retain the furlough scheme for sectors that are last to open. For the hospitality industry there remains a very serious case for doing that.”
“It’s true everybody was hoping for a robust recovery in tourism and hospitality but this will be determined by confidence among the public.
“When we know that the virus is under control and it’s safe to go out and visit destinations, people will do so – all the more reason to follow Scottish Government guidelines and the phased easing of lockdown.”
Claimants of universal credit or Jobseeker’s Allowance aged 18-24 doubled in the UK in the last three months – standing at more than 500,000.
The number of young new claimants have signed on between March and June is 276,000 – more than doubling over three months.
Laura-Jane Rawlings, chief executive Youth Employment UK said: “There can be a negative effect of entering the labour market during a recession – there can be a scarring of individuals that enter at this time.
“It’s not just about having one or two bad years it can be persistent. The people hit the most are people from disadvantaged backgrounds.
“There is a good reason to suggest these figures have been understated because of the furlough scheme – the real issue will be months down the line if businesses don’t survive.”