Scotland has an open, modern economy and because of its natural resources it has great economic potential. With core industries like finance and business services, food and drink, renewable energy, life science, universities, tourism and the creative industries. The Scottish Government’s aim is to increase economic growth, create opportunities to flourish and create an even more successful country. With the increase in economic growth, Scotland hopes to tackle the social and health challenges as well as create a more equalitarian society.
In January 2012 though, figures showed that the unemployment rate in Scotland has risen by 19,000 to a new figure of 221,000. This means that Scottish unemployment is now higher than that of the United Kingdom.
The new rise in the unemployment figures lead to the Scottish First Minister, Alex Salmond to request an urgent summit which would involve the finance ministers from the UK government and 3 devolved administrations. The aim is to put together a programme to create jobs.
Mr Salmond said that he felt the UK government’s economic policy was in a terrible state and that by isolating Europe, then things would only get worse.
Scottish ministers are desperately trying to return Scotland to a level of sustainable growth but feel that they have to deal with harsh cuts from the UK government. However the Scottish First Minster says that there is a higher level of employment in Scotland and a lower rate of economic inactivity than the UK. They suggest that the UK government and Scottish government have to work together to rebuild the economy.
However the new unemployment figures are disappointing and given that the Scottish economy has grown more slowly than the UK in general, the same can be said to be happening to employment. The Scottish government opposition is looking for the current government to change its economic policy to avoid disastrous levels of unemployment. The unemployment level is rising much faster than in the rest of the UK.
Although it was initially thought that the Scottish economy was recovering well and even outperforming the UK in general – mainly due to their economic policies – it appears that this was a little presumptuous.
Calls for investment in businesses, infrastructure and enterprise to transform the Scottish economy and create opportunity and hope for Scotland have been made by the opposition in the Scottish Government.
Of particular concern is the rising youth rate of unemployment. Scotland could well lose a whole generation of people who have skills. Small businesses have been encouraged to take on young people in an attempt to stimulate confidence and create a new generation of entrepreneurs. Unless the Scottish economy improves however, the unemployment rate looks set to increase.