Unemployment in Scotland has risen again with a new report warning 95,000 more jobs are in jeopardy because of anticipated public sector cuts.
New figures released by the Office for National Statistics on Monday reveal overall unemployment in Scotland increased by 13,000 to 231,000 over the last three months.
Scotland’s unemployment rate is now 8.6% compared to 7.7% for the UK.
Overall, unemployment in the UK fell by 20,000 over the last three months, although the number of people claiming Jobseeker’s Allowance rose by 5300.
However, a report by PriceWaterhouseCooper (PWC) has warned the situation is likely to get much worse before it gets better.
PWC public sector specialist Paul Brewer said, “We have already come to anticipate the heavy job losses that are likely to arise in the public sector due to the greater reliance on this sector for employment in Scotland and the impact of the impending spending review however, what this report emphasises is the knock-on effect this might also have on private sector employment.”
Scottish Government enterprise minister Jim Mather said, “With a week until the UK Comprehensive Spending Review, people are still losing jobs, as shown in the unwelcome rise in unemployment a timely reminder that now is not the time to threaten Scotland’s fragile recovery with Westminster cuts that are too quick and too deep.”
Scottish Labour finance spokesman Andy Kerr said, “The SNP have failed miserably when it comes to getting Scotland working, economic statistics generally and unemployment figures in particular show their utter complacency and failure to respond to the current challenges.
“With the unemployment rate higher than anywhere else in the UK, it’s time for government ministers in Scotland to get serious.”
Scottish Secretary Michael Moore said, “The coalition Government is taking real steps to ensure we create a secure economy which in turn creates long-term, quality jobs.”
Union leaders claimed the PWC report on predicted job losses demonstrate why the coalition government needs to show more restraint when planning cuts.
Dave Prentis, general secretary of Unison, said, “This report bears out all we have been warning over the past few months. Public spending cuts will damage the economy and will drag the country into a downward spiral.”
A Treasury spokesman said, “The Chancellor has set out a decisive plan to reduce the UK’s unprecedented deficit and restore confidence in the UK economy.”
He continued, “The government is committed to supporting private sector growth and that is why the budget announced a cut in corporation tax, a NICs (National Insurance contributions) tax holiday for new small businesses and a regional growth fund.”
Liberal Democrat finance spokesman Jeremy Purvis said, “The fact that unemployment continues to fall in the UK but continues to rise in Scotland shows the SNP isn’t working.”
STUC general secretary Grahame Smith added, “It is frightening to think that even before the coalition’s irresponsible and ideological cuts package begins to bite we are seeing a continuing stream of bad news for Scotland, with unemployment rising and the prospects for economic recovery looking bleak.”
Despite the rise in unemployment, the number of people claiming Jobseeker’s Allowance in Scotland last month was 1100 fewer than in August the first drop since June.
The number of people out of work in Tayside and Fife fell by nearly 1400 over the past month.
In Dundee, the number of people claiming Jobseeker’s Allowance fell from 5172 to 4778.
In Angus the number of unemployed dropped from 2316 to 2018 and in Perth and Kinross from 2127 to 1939.
In Fife the number of people claiming Jobseeker’s Allowance fell from 10,399 to 9793.