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Economic Development

Unions calls for recovery plan as fears grow of mass unemployment in North East

TUC follows North East LEP and North East England Chamber of Commerce of warning of dangers facing the region's economy

Beth Farhat, Regional Secretary for the Northern TUC(Image: Newcastle Chronicle)

Unions have called for a recovery plan to help stave off mass unemployment in the North East, after research showed that almost 350,000 jobs in the region are being supported by the Government’s furlough scheme.

A report from the North East TUC found that 29% of the region’s workforce - at least 349,500 people - has been furloughed, with even higher figures in Northumberland, Sunderland and South Tyneside.

The job support scheme is being phased out over the next three months and there are growing concerns that many of those on furlough could be made redundant when Government support is withdrawn.

A number of firms have announced job cuts in recent days, with easyJet shutting its hub at Newcastle Airport and Gardner Aerospace in County Durham moving to cut more than half of its workforce.

The TUC’s report - which comes just a few days ahead of an announcement from Chancellor Rishi Sunak on plans to boost the economic to help it recover from the coronavirus lockdown - says that the fastest recoveries from economic crises in º£½ÇÊÓÆµ history have been based on investment for growth.

The organisation has called for investment in infrastructure, public sector spending to be used to support local busineses, and a new green industrial strategy in the region.

It also wants what it calls “a new way of doing business”, with public support for businesses tied to increased training, better worker representation and other measures that improve job quality.

TUC regional secretary Beth Farhat said: “People are very worried about their jobs. Many have been laid off already. Losing your job is a dreadful experience – devastating for families. And if we allow mass unemployment to take hold, our economy will be smaller, and the recovery from the pandemic will be slower.