Politicians seize on employment figure hope - but jobless total still rising

Published on Wednesday 16 February 2011 18:21

SCOTLAND's unemployment toll fell by 13,000 in the last three months of 2010, newly figures have revealed.

The drop to 216,000 between October and December shows the Scottish unemployment rate stands at 8 per cent, just ahead of the UK average of 7.9 per cent.

Labour market statistics revealed that employment in Scotland increased by 23,000 at the same time, bringing the number of people with jobs to more than 2.4 million.

Despite the increase in the final quarter, employment fell over the year by 2,000.

In January this year, the number of people out of work and claiming Jobseekers' Allowance was 139,700 - an increase of 1,400 over the month, and the fourth monthly increase in a row.

Scottish Secretary Michael Moore said: "The increase in the number of people claiming Jobseekers' Allowance in January shows the government has to work hard throughout this parliament to create the conditions that enable all businesses to create more sustainable jobs."

SNP economy minister Jim Mather claimed the figures showed the Scottish Government's policies were making a real difference.

He said: "For three consecutive monthly labour market statistics releases, we have seen falling unemployment and rising employment in Scotland compared to rising unemployment and falling employment across the UK.

"Scotland's total employment rate is at its highest level since the three months to December 2009 - and Scotland has a higher employment rate and lower economic inactivity rate than the UK as a whole."

He added: "The figures show Scotland is the only UK nation with rising employment and falling unemployment over the quarter".

Liz Cameron, chief executive of Scottish Chambers of Commerce, said: "This is another welcome sign that the Scottish economy is recovering and that our unemployment rate is falling back towards the UK average."

Grahame Smith, general secretary of the Scottish Trades Union Congress, expressed concern about "long-term" joblessness and the increase in the claimant figure.

He said: "Any fall in unemployment is to be welcomed, but the entirety of the statistics does not provide any cause for celebration.

"The claimant count continues to rise, long-term unemployment is increasing on a number of measures, and employment remains far below pre-recession levels.

"Jobs growth is being driven by the increase in part-time work and the figures again show a steep rise in involuntary part-time working."

Scottish Labour leader Iain Gray said not enough was being done to tackle youth unemployment, after the new figures showed that 40,000 18-24 year-olds were claiming Job Seekers Allowance, up from 36,900 in December, a rise of 3,100.

He said: "These figures make grim reading for Scotland's young people. Young people are doing much worse in the recession than other groups."While I welcome the reduction in ILO unemployment, the fact remains that the number of people out of work and claiming benefits is up by 1,400 and shows the folly of the Tory slash-and-burn policies - cutting harder and deeper than they need - and the lack of action from the SNP."