Rising jobless total sparks fear over class of 'unemployables'

Published on Tuesday 17 November 2009 08:56

A SURGE in the number of people stuck on long-term jobless benefits in the Capital has led to fears the credit crunch will create a new class of "unemployables".

New data today shows that 3,000 people in the city have been claiming Jobseeker's Allowance (JSA) for more than six months – up 130 per cent on a year ago.

It has led to fears that many people will have been out of work for so long that they will find it difficult to get a job even when the economy recovers.

Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, said: "There is an unfortunate inevitability about these figures as if you have not had a job for a long time you become less appealing in a shrinking jobs market."

Last month, 1,985 people had been claiming benefits for between six and 12 months.

A further 1,015 had been signing on for more than a year, up 91.5 per cent from October 2008.

In contrast, the amount of people claiming JSA for less than six months has risen at the much slower annual rate of 54 per cent, at 7,165.

Mr Hewitt said that people who find themselves out of work in the longer term can become less employable so have to take action themselves. He said: "They certainly have to think seriously about taking up training, either refreshing existing skills or learning new skills.

"You can't just sit and hope something turns up."

The city council has linked up with a range of partner organisations to form the Economic Resilience Action Network, which aims to help get people affected by the recession back into work.

Councillor Tom Buchanan, the city's economic development leader, said:

"We are working closely with our partners to deliver a targeted and complimentary range of support services which will ensure that jobseekers have all the skills and opportunities they need to get back to work."

Across Edinburgh, unemployment is currently running at its highest rate since January 1999, with 3.2 per cent of the city's population now on JSA.

A spokeswoman for the Department for Work and Pensions said: "We're doing everything we can to help people back into work and are investing 5 billion to support jobseekers in this recession.

"We help 70 per cent of people to get off Jobseeker's Allowance within six months."