THE SCOTTISH Government has been challenged to do more to curb unemployment, despite the largest fall in the jobless total for four years.
New figures revealed a drop of 19,000, bringing the nation’s unemployment rate below the UK as a whole and below other UK nations.
That has been hailed as a huge achievement during what’s been described as the longest and deepest recession since the Second World War.
Importantly, the figures record a substantial drop in youth unemployment, down by 4.3% over the past 12 months, together with a drop in long-term unemployment.
UK-wide, the headline figures were even more positive, with the Office for National Statistics reporting the biggest quarterly fall in unemployment for over a decade.
Nonetheless, there remain 204,000 Scots out work and the same labour market statistics also reveal that employment in Scotland fell by 27,000 over the three months to October 2012.
The Scottish Trades Union Congress (STUC) for one warned that the statistics provided “no cause for complacency” and said the fall in unemployment was attributable to “people leaving the workforce, not entering jobs”.
It claimed that the number of “economically inactive women” had increased greatly and general secretary Grahame Smith said he believed the labour market would “remain weak” through 2013 and beyond.
The Scottish Government was also challenged to do better by businesses and organisations, including the Scottish Chambers of Commerce, which called for a “reduction in the burdens upon businesses”.
Amidst the mixed messages, finance secretary John Swinney welcomed yesterday’s figures and in particular the “substantial” drop in youth unemployment but agreed that even greater efforts were required.
“The Scottish Government is doing all it can to expand our economy by channelling funding into infrastructure projects,” he said.
“Through the budget, we have drawn down resources to fund a further economic stimulus to the Scottish economy of over £180 million and we are taking action to protect households, businesses and front line services.
“Tackling youth unemployment remains a priority. As part of our commitment, we are investing £80 million in creating opportunities that will help improve the job prospects of 23,000 young people.”
Secretary of State for Scotland Michael Moore also pledged no let-up in the fight to reduce unemployment as he, too, welcomed the figures.
“We are not complacent and this is why we set out a package of measures in the autumn statement last week to protect the economy, support growth and ensure fairness, while maintaining the crucial fiscal strategy,” he said.
Despite those assurances, words of caution were offered by Scottish Liberal Democrat leader Willie Rennie MSP who said: “The drop in unemployment is reassuring, but over 200,000 people remain out of work.
“It is crucial that the Scottish Government invests in our colleges to equip more people with permanent skills.”
The Scottish Chambers of Commerce, meanwhile, said the conflicting figures underlined the challenges that continue to face businesses in Scotland.
Chief Executive Liz Cameron said: “Our priority must be to focus support on businesses and job creation over the next two years and we cannot afford any distraction from this task.”
mmackay@thecourier.co.uk