Jobless total down 10,000 but more Scots claim benefits

NEW figures on Scotland's jobless total have revealed a mixed picture as unemployment fell by 10,000 at the same time as the number of claimants increased.

The number of Scots in work also fell by about 7,000 to 2.4 million, sparking fears from a business leader that Scotland's jobs market was now at a "crossroads", with the head of the country's trade union body warning that any economic recovery was at risk.

Scotland's unemployment figures dropped by 10,000 to 207,000 between February and April compared to the previous three months, according to figures from the Office of National Statistics (ONS).

The figures also revealed that the number of people economically active in Scotland, which counts those who are in work or available for work, fell by 16,000 and now stands at 2,680,000.

There was also a rise in Scotland's Jobseeker's allowance (JSA) numbers of 1,200 during last month to 139,300, separate figures revealed.

The unemployment figure of 207,000 represents all those not in work, including those not seeking work, such as full-time carers. The JSA figures only cover those claiming out of work benefits.

The statistics for Scotland were released as it emerged that the UK-wide unemployment dropped by 88,000 to 2.43 million.

Scotland's finance secretary John Swinney claimed the fall in overall unemployment north of the Border was due to the SNP's economic policies.

"The Scottish Government is committed to securing new jobs, investment and economic growth, and I welcome this further fall in unemployment," he said. "This marks the seventh consecutive reported fall in unemployment in Scotland, a decline of 10,000 during the three- month period February to April 2011.

"The economic policy we are delivering in Scotland within our current powers – including maximising infrastructure investment as a driver of recovery – has resulted in workforce construction employment increasing by 11.6 per cent in the year to March, compared to a fall of 0.2 per cent across the UK as a whole."

However, Grahame Smith, Scottish Trade Union Congress general secretary, claimed that jobs were being put at risk by the UK government's programme of public sector cuts.

He said: "The sad fact is that we are nowhere near where we should be at this point of a so-called recovery, and the UK coalition government must act now to change its ideology-driven austerity measures."

Liz Cameron, chief executive of Scottish Chambers of Commerce, said that Scotland's private sector was "crucial" to reducing unemployment in the months ahead. "It seems that Scotland's job market may now be at a crossroads.

"On the one hand, the private sector is picking up and new jobs are being created, or part-time jobs are being converted to full-time roles.

"On the other hand, we are only just beginning to experience the effects of contraction in the public sector as a result of spending cuts," she said.

"The remainder of 2011 will be crucial in determining whether private sector growth will be enough to match public sector contraction in Scotland."

David Lonsdale, CBI Scotland's assistant director, called on the SNP government to do more to encourage firms to invest in jobs and the economy.

He said: "Our own industry survey for the same period highlighted an improving trend for hiring. However, securing the economic recovery and rebalancing the economy away from an over-reliance on public spending is likely to take time and prove bumpy, which is why the Scottish Government must prioritise policies which encourage business investment, trade and commercial innovation."

Scottish Secretary Michael Moore welcomed the overall unemployment figure, but admitted the rise in the claimant count was disappointing.

He said: "We recognise these are challenging times for the Scottish labour market. The increase in people claiming jobseeker's allowance is clearly disappointing.

"The UK government invited the Scottish Government, the country's employment organisations and other stakeholders to work together for a stronger Scottish labour market.

"This is why we held a seminar in North Ayrshire to look at practical solutions to fight youth unemployment, and will follow this up with two more events in Scotland."

Citizens Advice Scotland chief executive Lucy McTernan backed Mr Moore's concerns about the rise in the claimant count for jobseeker's allowance, which she said was "worrying."