New unemployment figures have shown that the number of people out of work in Scotland rose by 10,000 in the last three months of 2009.

 

Although this brings the unemployment rate up to 7.6 per cent, it is still slightly below the UK average of 7.8 per cent.

 

The figures also show that the number of people claiming Job Seeker’s Allowance from December last year to January of this year rose by 3,800, with 140,600 people in total now receiving  the benefit.

 

Commenting on the figures, Scottish Secretary Jim Murphy said: "I know many Scots are worried about losing their jobs or being put on short time working and that's why the British government will work night and day to help people back into work and create the jobs of the future."

 

However, Scottish Government Enterprise Minister Jim Mather said that the figures demonstrated the “compelling case” for the continuation of the UK economic stimulus package. He said that analysis from the International Monetary Fund indicated that the UK was the only country in the G7 to have stopped fiscal stimulus measures in 2010.

Mather said: "Recovery is fragile at UK and Scottish levels, and now is not the time for the Westminster government to turn off the tap of stimulus measures.

 

"Analysis by the International Monetary Fund shows that among the G7, the UK is the only country to withdraw its fiscal stimulus in 2010 - reducing from 1.6 per cent of GDP in 2009 to zero in 2010. Across the G20 countries, the fiscal stimulus packages represent, on average, 1.6 per cent of GDP in 2010.

 

He added that while there had been some positive announcements on job creation from Ryanair and Stena recently, government investment will be vital in order to stabilise recovery.

 

Chief executive of the Scottish Chambers of Commerce, Liz Cameron, said that there were still challenges ahead for Scottish businesses. She added: “This underlines the need for the UK Government to rethink its plans to raise rates of National Insurance Contributions.  This would be a tax on jobs at a time when business can least afford it.”

 

Scottish Trades Union Congress (STUC) general secretary Grahame Smith said that policymakers “benefit from years of accumulated knowledge on the impact of unemployment” and should therefore be able to recognise the impact it can have on people’s mental and physical health.

 

He said that comparisons between the UK and Scottish labour markets were unhelpful and efforts should instead be targeted at keeping people in work and assisting those who are currently unemployed.  

 

Smith added: “A good start would be to drop the auction of virtue on public spending cuts. With the economy and labour market so fragile, it is almost certain that swingeing cuts will provoke a double dip recession, if not a full blown depression. Those who propose such economic masochism are apparently content for the mistakes of previous recessions to be repeated. It will be communities across Scotland who will have to live with the consequences”.