City's unemployment rate soars by more than a third

UNEMPLOYMENT in Edinburgh has soared by more than a third in the space of a year, according to Government figures released today.

Latest figures show the number of people in the city claiming Jobseeker's Allowance at just under 9000 – around 3200 above the total for the same time last year.

Large numbers of redundancies in the city's construction and retail industries – including hundreds of staff at the city's five branches of defunct retailer Woolworths – have contributed to a nine-year high in those claiming unemployment benefit.

The true number of people looking for work in the Capital is thought to be masked because those laid off in professional sectors, such as legal and accountancy, often do not claim benefit.

Thousands of job cuts are still expected to come in the city's financial sector later this year, with banking giant RBS already signalling its intent to scale back its operation in Edinburgh.

City leaders today warned that the worst was still to come and opposition politicians today called on council chiefs to concentrate on short-term measures.

Councillor Tom Buchanan, the city council's economic development leader, said: "The wave of redundancies from late 2008 are starting to filter through and these figures will also take into account those people who are now at the end of any redundancy pay-off they might have received.

"Edinburgh is in a fortunate position compared to the rest of the country in that we are starting from quite a low base for unemployment, but there is no question we have difficult times ahead.

Latest Office for National Statistics figures show that 2.8 per cent of the city's working age population is claiming Jobseeker's Allowance.

But although unemployment is on the rise in Edinburgh, current levels are nowhere near the levels of the early 1990s where the number of people claiming unemployment benefit regularly topped the 20,000 mark.

A breakdown of unemployment statistics released in February showed there were more than three people out of work for every job centre vacancy available.

Tory councillor Jason Rust, the group's economic development spokesman, said: "These figures are not surprising, we are beginning to see the first real wave of redundancies come through in the statistics now.

"There is a lot more that could still be done – I've had correspondence from people who find the process of claiming Jobseeker's Allowance confusing and we have to remember that it will be the first time for many people.

"You will have others – particularly those with bigger pay-offs or perhaps see a stigma with claiming benefits – have so far not done it.

"The council has certainly recognised the problem but I would like to see them doing more short-term, here and now things, than concentrating on the 'city region' long-term ideas."