British manufacturers are set to cut tens of thousands of job next year as the Scottish energy industry continues to struggle. The decline of the oil industry and the collapse of the steel trade has created a range of problems that have spanned the lengths and breadth of the country.
Aberdeen has been particularly affected by the downturn with many job losses affecting not only those in the oil and energy sector but in the hotel sector and other industries. It also affected homeowners planning to sell their properties as they are no longer as desirable as a result of the job losses and lack of employment.
In 2006, the average house in Aberdeen cost £312 000 with some houses selling for upwards of £3 million. This is in stark contrast to the figures at the end of 2015 which show the average price has dropped by 28% to £225 000.
If you need help with your finances, Trust Deed Scotland may be able to help you get back on track. Try the Trust Deed Wizard to find out how a Trust Deed could help write off a percentage of your debt and solve your money worries.
Aberdeen airport’s minimum ATM withdrawal is £200, a reflection of the affluence of the clientele who pass through its doors daily including oil workers, executives and engineers. People from this industry who are being laid off are experiencing difficulties adapting to lower paid work as they may already expensive financial commitments to maintain which they took on with the expectancy of earning a high salary.
A spokesperson at Trust Deed Scotland observed,
‘The number of people from Aberdeen enquiring about Trust Deeds has been rising for the past few months and that is most likely due to the lack of employment in the oil and gas business. People are having to change careers and take a very large drop in wages. Last week we spoke to a person who had become an HGV driver after redundancy from the oil sector and is now struggling to get by from month to month. People who were used to a certain standard of living are having to be very stringent.’
Manufacturers’ organisation EEF said the factory sector may grow by a small amount in 2016 but a downturn in China is poised to trigger a global slump. The cheap prices of Chinese steel were blamed for the closures of Scottish steelworks which forced thousands into unemployment.
Thousands of further jobs are at risk after British OGN failed to make the shortlist for a major North Sea contract on offer from US group Chevron. They appear poised to offer the contract to companies out with the UK, despite the fact OGN have a track record of success.
Mary Glindon, MP for North Tyneside where OGN are based commented,
‘If we lose this contract I am petrified that it could lead to closure and that is the end. Once a business closes then it is rare for it to reopen.’
Chairman of OGN, Dennis Clark confirmed as many as 3000 jobs at the Wallsend yard and in other areas of the company are at risk because there is no major work confirmed for the company within the next three years.