UNIONS have warned that Britain is hurtling towards an unemployment crisis of a scale last seen under Thatcher unless the government takes action to support workers and businesses.

Ahead of Chancellor Rishi Sunak’s summer financial statement on Wednesday, which was scaled back from a full emergency Budget, they have warned there is only a “very short window” to prevent hundreds of thousands of workers losing their jobs.

General secretaries of the Trade Union Congress (TUC), Unite, Unison, GMB and Usdaw warned that Britain is facing the biggest economic crisis for generations.

They said in a statement: “Without bold action from the government we face the very real prospect of mass unemployment on a scale not seen since the 1980s.

“Our message to the Chancellor is simple and stark, we have a very short window to save hundreds of thousands of jobs.”

Unions said the job retention scheme had shown what active government can do during a crisis, adding it had rescued companies and saved millions from having to claim benefits.

Mr Sunak’s plans should offer all young people facing long-term unemployment a guaranteed job paid at a “real living wage,” they said.

The general secretaries added: “Now is the time to build on that spirit, not shrink away from the challenges ahead.”

Their message comes as more than 24,348 high street retail jobs have already been lost in administration in the first half of 2020.

Experts from the Centre for Retail Research (CRR), which released the figure, said that this number was just the tip of the iceberg.

A host of major high street chains, such as Laura Ashley, Debenhams, Monsoon, Accessorize, Cath Kidston, Quiz and Victoria’s Secret have all entered insolvency after being forced to shut in March due to the coronavirus.

Over the past week, Harrods, Arcadia and John Lewis all confirmed plans to cut jobs.

CRR also revealed that 31,628 jobs were still at risk of being permanently axed at retailers.

Shadow chancellor Anneliese Dodds has urged Mr Sunak to focus on “jobs, jobs, jobs.”

On Sky News’ Sophy Ridge on Sunday, she reiterated Labour’s demand for the government to continue the furlough scheme beyond October 31 for the most affected industries, such as aviation and hospitality.

She said: “We can’t treat workers in struggling sectors the same as workers in sectors already back to full capacity.

“The Chancellor must abandon his one-size-fits-all wind-down of support for workers. And next week we really need a back-to-work Budget focused on jobs, jobs, jobs.”

Fears of a generation of unemployed people in Scotland have also been raised, with opposition leaders pointing to an exponential increase in the number of young workers claiming financial assistance in recent months. 

The number of young workers forced to claim social security has more than doubled up to May in some parts of Scotland, particularly in areas reliant on tourism and hospitality.

Scottish Labour leader Richard Leonard has called for swift action from the Scottish government.

He said: “These figures show that Scotland urgently needs a quality jobs guarantee. If we don’t put this in place before the furlough scheme ends, we risk losing an entire generation to the ravages of unemployment.

“The Scottish government must act swiftly and decisively to provide a future for all of our young people.”

The Scottish government did not respond to the Star’s request for comment at the time of publication.