The performance of the labour market suggests that the Scottish economy as a whole is in good shape, despite the difficulties caused by the world slowdown. ILO unemployment in Scotland has now fallen to 7.0 per cent of the workforce and is down 13,000 over the last year. And the figures also indicate that the New Deal continues to help its target groups. The number of young people claiming unemployment benefit for over 6 months has fallen by over 4,000 during the past year and the number of long term unemployed has fallen by 1,900. The UK Government s macroeconomic framework has created the stability crucial to long term economic growth.
Inflation is low and the public finances are in excellent shape.
The Chancellor s Pre-Budget Report included further new and important measures to encourage employment and enterprise. Scotland is already benefiting from the excellent conditions this Government has brought about and it stands to gain more from the continued pursuit of sound, long term economic policies.