Grahame Smith: Jobless figures requires a Scots response

THE Westminster Government’s response to yesterday’s significant further jump in Scottish unemployment seemed tired, and was certainly predictable.

Few commentators have missed the fact that it was highly politically attractive for Chancellor George Osborne to draw entirely the wrong conclusion from the threat of a UK debt downgrade and to continue to ignore the paradox of thrift.

But by ignoring the actual market price of government debt, he continues to wilfully deny the signals showing that the markets will support sensible investment to boost employment and the economy’s long-term capacity to grow. In the context of yesterday’s unemployment figures, such continued boasting about credit worthiness is shameful.

As we approach next month’s Budget it is as well to remind ourselves the bulk of the cuts are still to come. The Chancellor must decide whether to take the necessary action to try to prevent rising unemployment becoming a structural problem.

If, as we expect, he remains committed to ideological austerity, he will be choosing to condemn Scotland to suffer the long-term social and economic consequences of embedded worklessness. He will be repeating the mistakes of the 1980s and 1990s.

Having spent much of last year claiming the credit for somewhat better employment news in Scotland, the Scottish Government is now placed in the difficult position of seeing the Scottish unemployment rate holding its recent trend above the UK average.

It was entirely predictable that this would take place as postponed cuts from the 2010 budget trickled through. The Scottish Government must redouble efforts to support those out of work and those at risk of unemployment.

It must also recognise that for far too long the Scottish economy has simply failed to generate sufficient full-time jobs. This will involve ensuring all spending programmes, including commitments such as the Small Business Bonus Scheme, are fully focused on job creation. The development of sustainable quality full-time employment must now become the central goal of its economic strategy.

• Grahame Smith is general secretary of the Scottish Trades’ Union Congress.