Scottish unemployment rises again

The government plans to do all it can to help people find work

Unemployment in Scotland has risen by 8,000 over the last year, taking the total out of work to 137,000.

The Office for National Statistics (ONS) figures show the number of those out of work across the UK has also risen to 1.97 million.

For the three months to December, unemployment in Scotland stood at 137,000, a rise of 11,000.

The number of people out of work and claiming benefit increased by 3,400 in January to just over 101,000.

Scottish Secretary Jim Murphy said the figures were "disappointing" but added that the UK Government would do all it could to help people find new work.

He said: "There is no doubt we are facing a real challenge in employment as a result of the downturn.

"Government is doing all it can and we are determined not to leave anyone behind.

No-one can doubt the seriousness of the current economic situation Jim Mather Scottish Enterprise Minister

"My priority is to prevent the newly unemployed becoming the long-term unemployed.

"These are disappointing figures, but we must always remember they represent real people - hard-working Scots who may have lost their jobs or whose businesses are struggling as a result of the global downturn.

"We will continue to do all we can to prevent the newly unemployed slipping into the long-term unemployment that has scarred communities in the past."

Across the UK, unemployment increased by 146,000 between October and December to 1.97 million - the highest level since 1997.

Scottish Enterprise Minister Jim Mather said: "While today's statistics show no-one can doubt the seriousness of the current economic situation, we are maintaining in Scotland a higher employment rate, lower unemployment rate and higher economic activity rate than the UK average.

"To guide Scotland through the downturn and maximise our potential for recovery, the Scottish Government is doing everything within our powers to keep the economy moving."

'Tougher constraints'

Iain Ferguson, from CBI Scotland, said: "Many Scottish businesses are having to combat weakening demand and tougher constraints on accessing finance, and this is likely to push unemployment even higher in the coming months.

"There are some powerful forces for stability in the economy which are coming together and which should help later in the year, particularly falling inflation, lower interest rates, and a more competitive exchange rate.

"However, the best way of maintaining jobs is to keep viable firms in business.

"This requires a speedier implementation of efforts to get credit flowing again, coupled with help to ensure a wider availability of trade credit insurance so that firms can feel confident about doing business with one another."

Liz Cameron, chief executive of Scottish Chambers of Commerce, said: "This further rise in Scottish unemployment underlines that 2009 is going to be a difficult year for businesses and their staff.

"It is therefore important that the government acts to reduce the costs of employment and works with businesses to help retain key workers and skills in Scotland."

She called for the chancellor to implement a holiday for employers' national insurance contributions which she said would cut the costs of employment.