Almost 80 workers lose jobs every day in Scotland

The rise in Scottish joblessness came as the UK as a whole recorded the highest levels of unemployment since the autumn of 1994, when John Major’s Conservative government was in power.

The data released by the Office of National Statistics showed that across the UK, unemployment increased by 114,000 to 2.57 million in the quarter to August, the worst total since a total of 2.61 million was recorded 17 years ago.

The unemployment rate for the UK now stands at 8.1 per cent – the highest since 1996. Youth unemployment in the UK reached a record high of 991,000, while the numbers claiming Jobseeker’s Allowance increased for the seventh month in a row, to 1.6 million.

Despite the Scottish jobless rise, the unemployment rate north of the Border was 7.9 per cent, slightly less than the 8.1 per cent figure recorded for the UK as a whole. The statistics also showed that employment in Scotland has decreased by 24,000 over the same June to August period. The number in employment in Scotland now stands at 2,474,000.

Scottish Secretary Michael Moore admitted that the rising unemployment was “painful” and “a cause for concern”.

He said: “These figures are a difficult reminder of the task we face in continuing our fight for jobs in Scotland.

“The rise in unemployment is undoubtedly a painful one and a cause for concern, particularly for those families and individuals directly affected by a job loss.But we should not lose our focus.

“The UK government is doing all it can do to support the economy and our plan to reduce the deficit is the right one, particularly when we see the way difficult economic circumstances are affecting other countries.”

Mr Moore added: “Our actions, such as the creation of the most competitive tax system in the G20 and reducing corporation tax to 23 per cent by 2014, will help create the right conditions for balanced and sustainable economic growth.”

First Minister Alex Salmond said yesterday’s figures reinforced his case for an economic strategy based on releasing more Treasury cash for capital investment, persuading banks to lend more to small businesses and no compulsory redundancies in the public sector.

Despite the increase recorded over the last quarter, Mr Salmond pointed out that in Scotland unemployment has fallen by 25,000 from the recession peak in May-July 2010.

“Today’s figures reinforce our urgent and consistent demand that the UK government must deliver a Plan MacB approach immediately, to ensure that the recovery being built in Scotland is not derailed by Westminster’s wrong-headed economic policy,” Mr Salmond said.

The statistics showed that Scottish employment decreased by 24,000 over the quarter, with the employment rate falling to 71.2 per cent, slightly higher than the UK rate of 70.4 per cent.

But when the statistics were examined over the year, Scottish employment rose by 20,000, compared with a fall of 47,000 across the UK.

David Cameron admitted the UK government had to do more to stimulate the economy. The Prime Minister said: “I accept we have got to do more to get our economy moving, to get jobs for our people, but we mustn’t abandon the plan that has given us record low interest rates.”

Other figures showed a 178,000 slump in employment in the quarter to August – the biggest fall in more than two years – and the largest-ever cut in the number of part-time workers, down by 175,000.

The number of people classed as economically inactive increased by 26,000 to 9.35 million, a rate of 23.3 per cent. Taking the inactivity rate and the youth unemployment figures of 991,000 together, half of 16- to 24-year-olds are now not employed.

About 150,000 people were made redundant in the latest three months, an increase of 6,000 over the previous quarter. Long-term unemployment, counting everyone out of work for more than a year, rose by 60,000 to 867,000.

At Prime Minister’s Questions, Labour leader Ed Miliband said it was time for Mr Cameron to admit the government’s plan “isn’t working”.