Scotland defies rise in UK unemployment

Published on Wednesday 15 December 2010 14:28

Unemployment has fallen in Scotland for the first time in a year, despite going up across the UK as a whole.

The jobless total in Scotland now stands at 234,000 after falling by about 5,000 in the three months between August and October.

The Scottish and UK governments welcomed the drop yesterday, although business leaders sounded warnings over the longer-term economic picture in Scotland.

The total number of Scots unemployed, which includes those who are jobless but not eligible for benefits, is still 45,000 more than at the same time last year.

There was also a small rise of 300 in the number of Scots who are out of work and claiming Jobseeker's Allowance to 135,600 in November from the previous month.

Scottish Secretary Michael Moore described the rise in employment and the fall in unemployment as "encouraging".

He said: "We still face challenges as we can see more people claiming Jobseeker's Allowance in today's figures.

"Returning the economy to sustainable economic growth is the government's overriding priority."

The Scottish figures came as unemployment across the UK climbed to 2.5 million, prompting concerns from Prime Minister David Cameron.

"Of course anyone should be concerned, and I am concerned by a rise in unemployment," he told the Commons.

"We have got to get the private sector going, increase the number of jobs that are available."

The unemployment rate north of the Border stands at 8.7 per cent, compared with 7.9 per cent for the UK as a whole.There has also been a rise in the number of people in employment, increasing by 17,000 over the quarter to 2,472,000. However, this total is 40,000 lower than the same period in 2009.

Scottish Chambers of Commerce chief executive Liz Cameron described the fall in unemployment as a "welcome seasonal boost".

She said: "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."

CBI Scotland assistant director David Lonsdale added: "It's encouraging and positive news.

"It's too early to say if this is going to be the trend from now on, but we still expect there to be a decidedly modest improvement in the overall economic situation in Scotland over the next couple of years."

The Scottish Government's enterprise minister Jim Mather highlighted the fifth consecutive rise in employment levels.

He 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."

But Labour finance spokesman Andy Kerr voiced "deep concern" that the fall showed no comparative reduction in the number of young people who are out of work.