Scottish unemployment figures: 198% rise in young Scots out of work

With more than 100,000 young Scots officially unemployed, latest figures from the Office of National Statistics showed that 44,200 18-24-year-olds are claiming out-of-work benefits, up by more than 3,000 compared with this time last year.

Of that number, 4,800 are recorded as having been looking for work for more than a year – up from just 1,600 this time last year, an increase of 198 per cent.

It means that one in ten of those claiming dole have been doing so for more than 12 months, compared with just 4 per cent of the group this time last year.

With the numbers who have been claiming benefits for more than six months also rising steeply, there were fresh fears last night that the “scar” of a period of lengthy unemployment was now affecting far too many young people.

UK and Scottish ministers will meet today to discuss the growing crisis at a convention in Dundee, amid growing calls from the SNP administration for Chancellor George Osborne to use his Budget next week to grant a tax break to firms that hire young staff.

However, analysts said the new figures showed a glimmer of hope in the moribund Labour market, with the rise in unemployment lower than many had feared.

That could mean that predictions from earlier this month that as many as one in ten Scots of working age could be unemployed by the end of this year may fall short of the mark.

Across the UK, the new Office of National Statistics figures showed unemployment rose to 2.67 million during the three months to January.

Women continue to bear the brunt of the jobs deficit. In Scotland, while unemployment among men has fallen by 7,000 compared with the previous three months’ average, it has risen among women by 12,000.

In Scotland, the unemployment total, which includes those out of work and not eligible for benefits, is 234,000 – or 18,000 higher than a year ago.

Of that figure, 142,800 are claiming Jobseeker’s Allowance, up by 600 on the previous month and 5,400 higher than it was a year ago.

The unemployment rate is 8.7 per cent, well below the north-east of England, where it has shot up to 10.6 per cent, but still above the UK average of 8.4 per cent. Scotland’s unemployment rate is also above that of Northern Ireland at 6.5 per cent, but below Wales at 9.1 per cent.

Meanwhile, the number of those officially employed has fallen by 11,000 from November to January 2012 to 2.4 million.

Economists said that the rise in unemployment was further testament to the continuing slowdown in public-sector employment, as budget cuts lead to recruitment freezes and a reduced labour force.

At the same time, the private sector is failing to pick up enough of the slack to ensure that the labour market remains healthy.

Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: “The split between the public and private sectors in clear: last year 16,000 jobs were lost from the public sector in Scotland, whereas total private-sector employment increased by 7,800.

“If Scotland is to tackle the problem of growing unemployment, then government must look to provide the private sector with the support it needs to boost job creation.”

Scottish and UK ministers have pledged to offer training or work opportunities to youngsters who find themselves without work after leaving education, but the figures suggest thousands are still finding little opportunity.

On the impact on young people, Jim Sweeney, the chief executive of YouthLink Scotland, the national agency for youth work, said last night: “The long-term scarring effects of youth unemployment can have a major, negative impact on the future employment chances and careers of our young people.

“Whilst unemployment patterns can appear cyclical when viewed in the long term, for individuals and communities their effects are immediate and can often be personally devastating.”

Finance secretary John Swinney added: “It is clear from these figures that we need sustained action in next week’s UK Budget to support economic recovery.”

He added: “Tackling youth unemployment is a top priority, and the tax system can play its part. The Chancellor should deliver a National Insurance holiday relating to the recruitment of young people – a relatively simple measure that could significantly enhance employment opportunities for young people, and could also be extended to cover recruitment by small and medium-sized businesses.”

In his Budget next week, the Chancellor is expected to provide tax incentives for firms.

UK ministers seized on the lower than expected increase in unemployment. Employment minister Chris Grayling said: “This is a more encouraging set of figures, with signs that the labour market is stabilising.”

Today, Welfare Secretary Iain Duncan Smith and Scottish Secretary Michael Moore will join Mr Swinney and Scottish youth employment minister Angela Constance at a Convention on youth unemployment.