CITIZENS Advice Scotland has warned Scots to brace for an “economic storm” as new figures reveal unemployment is on the rise.

Data from the Office for National Statistics (ONS) shows the jobless total went up 1.1% to 4.6% between February and April – the highest in the UK.

It means 127,000 over-16s in Scotland are out of work.

Scottish Business, Fair Work and Skills Minister Jamie Hepburn said the results reflect the first full month of lockdown and “show clearly the scale of the challenge facing Scotland as a result of the coronavirus pandemic”.

Later, Finance Secretary Kate Forbes set out a £230 million return to work package designed to stimulate the economy through support for businesses and construction.

But the IMF predicts the world may be facing a Great Depression-level crisis this year and it’s feared that the withdrawal of furlough support to firms from Westminster could cost more jobs in the coming months.

Mhoraig Green of Citizens Advice Scotland commented: “These figures may be the tip of the iceberg compared to the state of the economy later this year as the furlough scheme winds down and industries face reduced demand.

“People who find they have no job to return to after furlough will be entering a difficult jobs market.”

Calling for a focus on the creation of “fair-paying, secure” posts, she went on: “The whole UK may be facing an economic storm in the months to come. It’s vital that the most vulnerable aren’t swept into deeper poverty as a result.”

Hepburn said many Scots “will be feeling a deep sense of anxiety about their livelihoods”.

He went on: “Keeping people in work while supporting those who have lost their jobs will continue to be at the heart of our thinking as we carefully reopen the economy.

“Scotland’s labour market has changed drastically since the lockdown measures were imposed.”

He called on the Treasury to further extend coronavirus job support schemes past the October cut-off date, saying they should continue “for as long as required”.

He said failing to do this “will put the economy at a competitive disadvantage in recovering from this crisis, and could result in additional job losses”.

Scottish Secretary Alister Jack said the economic impact of coronavirus will “continue for some time”.

He went on: “The UK Government is providing comprehensive coronavirus support packages to help people get through this unprecedented pandemic.

“These have saved nearly 800,000 jobs across Scotland, as well as helping people and businesses through VAT deferral, company loans and Universal Credit.

“This is in addition to the £3.8 billion package already given to Holyrood to help tackle the crisis.”

Dr Stuart McIntyre, head of research at economic think tank the Fraser of Allander Institute, said “much more substantial increases in unemployment” are expected in the coming months.

Major employers who have already set out redundancy plans include Rolls-Royce, British Airways and Macdonald Hotels.

However, McIntyre said the public must be “cautious” when comparing the figures for unemployment in Scotland and the UK as a whole.

He said: “These numbers are estimates from a survey, and statisticians calculate a range of values around the headline estimate to reflect the associated uncertainty.

“The range for the unemployment rate in Scotland and the UK overlap – so we must be cautious about concluding that there are big differences between these.”

Liz Cameron, chief executive of the Scottish Chambers of Commerce, said the new figures “only hint at the scale of the challenge that lies ahead” and called for a “flexible approach” from the Treasury to furlough in Scotland.

Highlighting hospitality and tourism, Cameron stated: “These sectors are where there is greatest risk of a jobs crisis, which will disproportionately affect young people and the low paid.”