The Iron threw away a 1-0 lead to lose at Bury, leaving them five points adrift with just two games remaining.
And although Laws will not stop fighting, he admits the drop is looming large.
He said: "There has to be a large portion of doubt now because the performance in the second half and the defeat means it is a huge task.
"It would be a miracle if we stay up. Even if we win both games, we're depending on the complete collapse of other teams and I'm not seeing that at all.
"I'll still keep fighting, that's for sure. I know it's cheap talk but we've got to."
Frustratingly for Laws, Scunthorpe had controlled much of the game, going ahead on the stroke of half-time when Karl Hawley headed home Mark Duffy's cross.
But they suffered an incredible collapse, sparked by on-loan Peterborough duo Jonson Clarke-Harris and Nicky Ajose.
Clarke-Harris rifled a stunning 20-yard free-kick into the corner of the net before Ajose capitalised on a defensive error to slot home the winner.