"IT IS likely to get worse before it gets better."

That was the stark warning from Isle of Wight Council leader Dave Stewart in response to a huge rise in those claiming out-of-work benefits during the coronavirus crisis.

Numbers have more than doubled since March.

Figures released by the Office for National Statistics shows a jump in claimants from 2,580 in March, to 5,460 in July.

The latest figures, for August and September, are yet to be released.

It means in July, 6.8 per cent of the Isle of Wight population, aged 16 to 64, was unemployed.

By comparison, the South East figure is 5.3 per cent and Great Britain is 6.5 per cent.

Isle of Wight County Press:

Cllr Stewart said: “The latest unemployment figures are a sad reflection of the warmings given by the Institute for Fiscal Studies which recognised that the Island was one of the most at risk areas from the economic impact of coronavirus.

“Unemployment rises are a national issue but here we are particularly vulnerable. The warning is that with furlough ending and the impact on tourism of Covid, the situation is likely to get worse before it gets better.

“We need to carefully balance the support we have been providing by getting grants out to businesses with our ability to respond to some of these macro-economic factors.

“The government's Kickstart Scheme to provide job placements for young people is an opportunity for us to do something positive as a council, and support the smaller companies who take people on.

“We will be announcing investments and other measures we hope will mitigate some of the impact of coronavirus, but I know we must take every opportunity we can to give ourselves an economic future.

“That’s why we are looking at major investments in our business sector, housing provision and other employment opportunities — such as the range of national and international sporting events wanting to come to the Island.

“It will be a challenge, but I believe with our focus on strong leadership and safer communities we can pull through despite the challenge of Covid-19."

Island MP Bob Seely said it was a cause for concern but there should be caution over the figures, as it included those who have become eligible for Universal Credit as part of the government's response to coronavirus.

He said: " As part of the government's response, enhancements were introduced to Universal Credit which may have increased the number of employed people eligible through their earnings falling below income thresholds.

“It has been estimated that only around half of the claimant count rise between March and May relates to those newly out of work.

“I am putting ideas from the Island’s business community forward to government, to try to keep as many businesses as possible going through the winter months, to safeguard jobs and incomes as well as encourage new private investment in emerging industries such as green energy.

“I am in regular discussions with Downing Street officials about what can be done to protect jobs and encourage new.

“It’s going to be a long road to recovery but I am working with organisations and businesses across the Island.”

Steven Holbrook, chief executive of the Isle of Wight Chamber of Commerce, said: “The unemployment figures are a real cause for concern, especially as the Island now leaves the traditional summer peak period of employment.

"Businesses will need to be supported across the sectors to help them generate employment opportunities. A key driver will be the Kickstarter Scheme. The chamber is getting fully behind it and will be acting as an intermediary to allow businesses to participate."

The chamber can also help people in the 50-plus category to set up their own business.

The claimant count is measured by combining the number of people claiming Jobseeker's Allowance (JSA) and National Insurance credits with the number of people receiving Universal Credit principally for the reason of being unemployed.