Scotland’s unemployment falls again, but more than ever claiming benefits, reports Scottish Trust Deed Company

Scotland’s unemployment figures saw the seventh successive drop between February and April, yet the number of people claiming benefits increased reports Debt Solutions Company Scottish Trust Deed.

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(Free-Press-Release.com) July 26, 2011 --The Office of National Statistics reported a 10,000 drop in unemployment figure, but at the same time a number of worrying signs have emerged that could put the economic recovery at risk.

The number of people economically active fell by 16,000 while the number of Scots in work fell by 7,000. At the same time a rise in Jobseeker’s allowance claimants rose by 1,200 in one month.

"The Scottish Government is committed to securing new jobs, investment and economic growth," said Scotland's finance secretary John Swinney. "This marks the seventh consecutive reported fall in unemployment in Scotland.
The economic policy we are delivering in Scotland within our current powers – including maximising infrastructure investment as a driver of recovery – has resulted in workforce construction employment increasing by 11.6 per cent in the year to March, compared to a fall of 0.2 per cent across the UK as a whole."

However, the head of Scotland’s trade union body, Scottish Trade Union Congress, fears that jobs are being put at risk and the economic recovery may end up going backwards when the figures are considered as a whole.

"The sad fact is that we are nowhere near where we should be at this point of a so-called recovery, and the UK coalition government must act now to change its ideology-driven austerity measures,” said Grahame Smith.

A spokesperson for Scottish Trust Deeds, says: “Despite the reduction in unemployment, Scotland is at a bit of a crossroads. New jobs are being created all the time by the private sector, there’s more full time positions being created from part time, yet at the same time the public spending cuts are beginning to bite. The year 2011 is set to be a balancing act between the private sector growth and public sector cuts, and at the moment it’s not clear which one will dominate.”

It’s still unknown where the unexpected rise in Jobseeker’s allowance claimants has come from, but Lucy McTernan, Chief Executive of Citizrn’s Advice Scotland is worried.

“These are not good figures. They show the basic truth that too many people in Scotland cannot get jobs. And of course what is not reflected by today’s statistics is the numbers of people who are in work but are in low-paid, short-term, part-time jobs that don’t really meet their needs.

“Every day at CABs across Scotland our advisers see people who are unemployed or struggling on low pay. We see the effect this has on them; the loss of confidence, the poor quality of life, and the way it hits their ability to save and spend – which then hurts the economy further. People need decent, sustainable jobs. And in the meantime they need the adequate support to help them get by. At the moment, neither of these things is being provided.”

The figures do little for many of Scotland’s citizens, who have been struggling to get by on part time jobs or benefits and increasing amounts of debt the own month upon month. Debt solutions such as Protected Trust Deeds are rising in popularity as individuals struggle to find a way to manage their debt and prevent it from rising any further.

“The last year has seen a large increase in the number of people taking out Trust Deeds ,” said the spokesperson. “Before 2010 people may have has some debt on their credit cards or had loans with affordable manageable payments. Their debt payments took up only a small fraction of what they earned and were under control. Now with redundancies, cuts to working hours, a lack of overtime and pay decreases, people have turned to credit as a lifeboat to get by and the amount they now owe and their monthly payments are spiraling out of control.”

“These figures will do little reassure them that the dire situation that many of them face will be over soon,” concluded the spokesperson.

More information can be found online at http://www.scottishtrustdeed.co.uk

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