Jobless increase north of the border sign of fragile recovery

The number of people out of work and claiming jobseeker’s allowance in Scotland rose by nearly 1,500 to 138,588 last month, official figures showed yesterday.

August’s increase in the unadjusted total came as the impact of continuing uncertain economic conditions and the recent recession continued to bite hard.

Few parts of the country were spared as unemployment climbed, with the Highlands among the notable exceptions after a 1.1% fall to 3,613 in the number of people out of work.

On a different measure, using seasonally adjusted labour force figures, Scottish joblessness rose by 25,000 between May and July, to 239,000, while unemployment throughout the UK fell by 8,000 to 2.47million.

Scotland’s jobless rate increased to 8.9% over the period on this basis, compared with a UK figure of 7.8% Enterprise Minister Jim Mather said the figures were proof that spending cuts imposed by the UK Government were too quick and too deep, and posed a significant threat to Scotland's fragile recovery.

On a more positive note, the number of people in work north of the border rose by 25,000 during the quarter to July, to 2.45million, and Mr Mather said significant numbers of jobs were being created.

He added: “The very unwelcome rise in unemployment highlights that recovery is fragile.
“More needs to be done to tackle unemployment and create more job opportunities, which underlines the urgent need for Scotland to secure economic powers and financial responsibility so that the Scottish Government and parliament have the macroeconomic tools needed to boost growth and employment.”

Scottish Secretary Michael Moore blamed the “economic incompetence of the previous Labour government at Westminster” for the rising jobless total in Scotland.

STUC general secretary Grahame Smith said the rise in unemployment was a social and economic disaster for Scotland, while the Federation of Small Businesses (FSB) in Scotland called for government action to make it easier and more affordable for firms to expand their workforces and “help reverse this damaging trend”.

FSB spokesman Colin Borland added: “We will need better and more focused support.”

CBI Scotland assistant director David Lonsdale said: “Recent data suggests Scotland is emerging from recession albeit at a decidedly modest rate, demonstrating just how fragile the recovery is. For many firms and individuals, it will not feel like recovery for some time yet.

“This re-inforces the need for government at all levels to put economic growth at the heart of their upcoming spending plans.”

Scottish Chambers of Commerce chief executive Liz Cameron said the higher rate of unemployment in Scotland was very worrying, particularly because public-sector spending cuts were likely to hit harder north of the border over the next few years.

She added: “Unemployment has been falling in the rest of the UK for most of this year, but here in Scotland the numbers are heading in the wrong direction.”