Fall in unemployment in Scotland welcomed
Unemployment in Scotland has fallen for the first time in a year — however, there are now more than 2.5 million on the dole across the UK.
- By Stefan Morkis
- Published in the Courier : 16.12.10
- Published online : 16.12.10 @ 05.52pm
The number of people out of work in Scotland fell by 5000 to 234,000 over the last three months — one of only four areas in the UK to record a fall.
The number of people in a job in Scotland rose by 17,000 to 2,479,000 over the same period, although this is 40,000 less than a year ago.
Scottish secretary Michael Moore described the improvement as "encouraging."
He said, "We still face challenges as we can see more people claiming Jobseeker's Allowance in today's figures."
Scottish Government enterprise minister Jim Mather said, "This trend is now having a welcome and positive impact on unemployment, which has fallen for the first time in a year, and is the largest quarterly decline for more than two years."
Mr Mather said Scotland was now "in the top four of 12 UK nations and regions in terms of employment and economic activity rates."
He said this was the result of "robust action" taken by the Scottish Government, but warned the economic recovery "remains fragile."
Labour finance spokesman Andy Kerr said more must be done to tackle unemployment among 18- to 24-year-olds, which remained static over the last three months.
He said, "It is heartening that the overall level of unemployment in Scotland has started to fall, but I am deeply concerned that the latest figures show no comparative reduction in the number of young people who are out of work.
"Unemployment is a personal tragedy for those who experience it, and we desperately need to promote growth in the economy."
'Very worried'
A new report released by the Organisation for Economic Co-operation and Development (OECD) found people in the 18-24 age group are twice as likely to be out of work than any other age group.
Citizens Advice Scotland chief executive Lucy McTernan said the fall in Scottish unemployment was a "glimmer of good news", but warned it is likely to soar in 2011.
She said, "We are very worried that the impact of the public sector cuts will start another upward trend in Scottish unemployment in 2011.
"We could call on both Scottish and UK governments to pursue policies which will help people stay in their jobs and protect the income of those who do not."
She added, "In particular, we think more targeted help is needed for young people, who in many ways have been most severely affected by the recession."
Liz Cameron, chief executive of Scottish Chambers of Commerce, said, "This news of a fall in Scottish unemployment is a welcome seasonal boost, particularly as it has brought to an end this year's trend of rising unemployment against a falling UK rate.
"However our overall unemployment rate still exceeds the UK average and we still have concerns regarding how the impending VAT increase and public spending cuts might affect the Scottish economy in the New Year."
Despite the improving picture in Scotland, unemployment increased by 35,000 across the UK, while youth unemployment has reached record levels.
The jobless total climbed to 2.5 million in the quarter to October, a rate of 7.9% — higher than it has been since the start of the year.
'Stable environment' needed
There were 839,000 people unemployed for more than a year, up 41,000 over the three months and the worst figure since 1997.
The Office for National Statistics also reported that the number of 16-24-year-olds out of work increased by 28,000 to 943,000, one of the highest figures since records began in 1992 — giving a jobless rate of 19.8%.
Male unemployment increased by 11,000 to 1.46 million, while the number of women out of work rose by 24,000 to 1.04 million, the highest total since 1988.
There was also a rise in the number of people classed as economically inactive — including people looking after a sick relative, students or those who have given up looking for a job — up by 22,000 to 9.29 million, a rate of 23.2%.
The category showing the biggest increase was those who have taken early retirement, which rose by 27,000 to 1.53 million.
Westminster employment minister Chris Grayling said, "These figures highlight the crucial importance of the action we are taking to keep the economy moving forward.
"It's essential to create a stable environment where businesses can flourish and create jobs — with those on benefits at the front of the queue to take them up.
"That's why we are increasing the support available to people through both Jobcentre Plus and our new work programme, which will revolutionise the way in which we help the long-term unemployed into sustained employment."
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