Jobless toll worsens as 300 people a day axed

Published on Wednesday 15 September 2010 19:23

Unemployment in Scotland has risen again, with figures published yesterday showing that 239,000 people are now out of work.

• Scottish unemployment rose by 25,000 between May and June Pic: Getty

Official statistics revealed that Scottish unemployment rose by another 25,000 between May and July this year - the equivalent of almost 300 people a day - and is now 49,000 higher than it was over the same period the year before.

According to the figures published by the Office of National Statistics, Scotland's jobless rate increased to 8.9 per cent and is higher than the UK average unemployment rate of 7.8 per cent.

The Scottish figures contrasted with the picture across the UK as a whole, which experienced a slight fall in unemployment, with the number of people out of work dropping by 8,000 to 2.47 million.

Representatives of the business community expressed their concern about the trend, while politicians descended a wave of recrimination and blamed their rivals for the slump.

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Paradoxically, the 25,000 rise in Scottish unemployment came with a 25,000 increase in the number of Scots classified as being in employment. There were 2,455,000 Scots in employment - a rise of 25,000 on the previous quarter, but 40,000 fewer than a year ago.

The rising numbers in employment could be partially explained by the Scottish working population - the number of people over the age of 16 - having increased by 8,000.

Another factor was a fall of 42,000 in the number of people classed as economically inactive - a category classified as those of working age who not actively seeking work or are unavailable for work.

The number of people who are economically inactive in Scotland fell from 1,608,000 at the beginning of the year to 1,565 in July.

The figures also showed the UK claimant count - another measure of unemployment that looks at those out of work and receiving unemployment benefit - rose by 2,300 in August to 1.47 million.

The claimant count in Scotland rose to 136,100 in August - 700 more than in the previous month. This total is 3,900 higher than it was in August last year.

Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: "The fact that the unemployment rate is now far in excess of the UK average is very worrying, particularly as Scotland is likely to be heavily exposed to public sector spending cuts over the next few years.

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"

Andy Kerr, Labour's finance spokesman, said: "These figures show Scotland is moving in the wrong direction, and young people are being particularly hard hit by rising unemployment.We cannot allow another generation to be thrown on the scrapheap."

Mr Kerr called for action from ministers at both Holyrood and Westminster, demanding: "Scottish Secretary Michael Moore must start standing up for Scotland and stop doing the Tories' job for them.

"SNP ministers also need to take responsibility for the Salmond slump. It is an indictment of the First Minister's record that 30,000 jobs have been lost in the building industry and Scotland's record is worse than the UK as a whole."

But Tory finance spokesman Derek Brownlee said the jobless figures were "yet more evidence of the scale of the challenge left by Labour and the human cost of their economic incompetence.

"Scotland has relied too heavily on public sector employment in the past and it is time to focus on helping new businesses, and supporting small business."

Scottish Secretary Michael Moore agreed with Mr Brownlee and blamed the previous Labour government at Westminster for the rising jobless total.

He said: "These figures show the heavy human price that Scotland is paying for the last government's economic incompetence.

"The coalition inherited rising unemployment and a record peacetime deficit, and our challenge is to turn those problems around."

He claimed the Conservative-Liberal Democrat coalition was doing that by taking "decisive action to restore our economy and, in turn, help Scotland's men and women to find quality, lasting jobs".

However, Holyrood enterprise minister Jim Mather accused the Westminster government of cutting too far, too fast.

Mr Mather said the rise in employment was an "encouraging sign" but added: "The very unwelcome rise in unemployment highlights that recovery is fragile and is threatened by UK government spending cuts that are too quick and too deep."

He said the Scottish Government was "directly supporting some 15,000 jobs" through its economic recovery plan."