The State of Jobs in Scotland
submitted: Apr 5th 2009 |
by: Sarah Maple |
Total views: 44 |
Word Count: 398 |
Although the recession has undoubtedly taken hold around the world, in the UK the worst place to be hit has been Scotland. In a report by The Times yesterday, the country was said to be feeling its worst downturn since the war. So what implications has this had for the workers in the country? Where are the worst hit areas? And what impact has the credit crunch had on the state of full and part time jobs?
Research from The Fraser of Allander Institute in Strathclyde are speculating that unemployment could rise from 137,000 to 220,000, with the recession lasting for more than three years. Despite this, others are speaking of differing affects on the state of unemployment, i.e. that many European immigrant workers may begin leaving their current jobs and returning back to their home countries in search for a better cost of living in relation to their wage.
However, this possibility only really covers the minimum wage sector of the industry. If this trend begins we may well see individuals who have been made redundant from jobs that were paid above minimum wage filling these new gaps on a considerably lower wage. In the short term, at least, there is the possibility that the lowest paid jobs will still be available to people, whilst those within the mid bracket might disappear completely.
Statistically, economic growth for the country was 0.6 percent for 2008. This is set to decline by over 2.5 percent during 2009 and set to gradually pick up over two years with a recovery of 0.52 percent in 2011. Researchers at Allander predict that during this time, 190,000 jobs could be lost – a considerable amount when one considers that the population of the country is just over 5 million.
According to The Times, Professor Ashcroft of the Fraser of Allander Institute suggests ‘that improving the availability of bank credit to companies was now a critical element in fighting recession.’ Looking back at the growth of Scotland’s economy before the recession, it was the financial services industry, the electronics manufacturing industry, and North Sea oil and gas that built the country up. One wonders whether now is the time to consolidate financial aid for this area outwards, at least, in order to continually stimulate an already well-established infrastructure?
About the Author
Sarah Maple writing about Jobs in Scotland and the Jobs Market.
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