Scottish unemployment rate drops to 8.4%

The number of people claiming Jobseekers Allowance has risen

Unemployment in Scotland fell for a second time with a 5,000 drop between September to November to 225,000, the Office for National Statistics said.

However, the total is 23,000 higher than for the same period in 2009.

Scotland's overall unemployment rate - which includes those who are jobless but not eligible for benefits - is 8.4%, higher than the UK rate of 7.9%.

Figures also showed a rise in the number of people out of work and claiming Jobseekers Allowance (JSA).

This increased by 2,200 to 138,300 in December - 2,400 higher than it was 12 months before.

In the UK as a whole, unemployment increased by 49,000 in the three months to November to 2.5 million.

In Scotland, employment increased by 18,000 to 2,470,000 over the period of September to November 2009. This was 38,000 lower than in the same period in 2009.

Secretary of State for Scotland Michael Moore said: "Any news of falling unemployment in Scotland is to be welcomed but these figures also show the scale of the challenge this government faces."

He added: "The increase in the number of people claiming Jobseekers Allowance is an unwelcome reminder of the effects of the financial crisis we inherited.

"The government is doing everything it can to create the conditions that enable all businesses to be thrive and create more jobs.

"Tackling the deficit is unavoidable and is the steps we are taking are already helping keep long-term interest rates lower and encourage businesses to invest and grow."

Scottish Finance Secretary John Swinney said: "For two consecutive monthly labour market statistics releases, the labour market figures show falling unemployment and rising employment in Scotland, compared to rising unemployment and falling employment across the UK."

However Mr Swinney added: "While today's figures are welcome, Scotland's recovery remains at a crucial stage."

Grahame Smith, Scottish Trades Union Congress (STUC) general secretary said: "Over a year since Scotland technically left recession, the labour market shows little sign of durable improvement.

"With public spending cuts only beginning to bite in terms of employment, the Scottish labour market faces a grim 2011."