Scotland's Employment Problems
By GEORGE MIDDLETON * EcoNomIc growth in Scotland dates back to the beginning of the Industrial Revolution. James Watt became prominent in Glasgow in 1764, and ScOtt's shipyard at • Greenock is the . oldest in the world. Coal-mining, iron and ,steel production, shipbuilding and marine engineering have constituted the basic industries of Scotland since the early days of industrial development in Britain. Today, Scottish industry is noted not only for the ships it builds, from the Queen Elizabeth to the latest type of dredger, but also for its medium and heavy engineering products.
Over two, million persons in Scotland are registered for employment and of these about 80,000, or nearly 4 per cent., are unemployed, whereas the figure for Great Britain is just over 2 per cent. Unemployment of around 40,000 to 50,000 has persisted since the war despite the most active endeavours of the social forces in Scotland to reach an equation at the national figure. Scot- land at no time has had more unfilled vacancies than unemployed persons so that she could never be accused of having over-full employment.
In Dundee there are twenty unemployed workers looking for every one vacant job. There are more than 5,000 workers signing on at the Labour Exchange : six in every hundred— three times the national average. The prospect for many school-leavers today is going straight from the classroom to the dole queue. And one jute worker and one building worker in every ten are drawing unemployment benefit.
One of the major factors adversely affecting the employment position in Scotland is the con- tinuing over-dependence on heavy industry. Two- fifths of the working population are engaged in the latter as against one-fifth in England and Wales. Diversification has therefore been one of the main demands of the Trade Union Movement.
Scotland's share of what might be described as the modern industries is poor compared with that of England.' In aircraft construction there are twenty-five times as many employed in England as in Scotland; in chemicals twenty times; in rayon, nylon and synthetic fibres there are forty jobs for each one in Scotland.; only 8,000 people are employed in Scotland in motor-car and cycle components compared with about 400,000 in England; in the field of television, radio, -etc., there are about 2,000 in Scotland as compared with 40,000 in England.
A high proportion of American industry has come to Scotland. It has been estimated that about 80 per cent. of the American firms who have established themselves in the United Kingdom are located in Scotland. These firms have brought thousands of jobs and have assisted in some measure towards meeting Scotland's need for lighter industries. Moreover, there is the prospect that with the opening of the free trade area in Europe more American firms may be attracted to Scotland.
In the sphere of new factory provisions, a large proportion of the factories have been built by Government money and rented to the * George Middleton is General Secretary of the Scottish TUC. tenants. The almost complete cessation of this 'in recent times struck a heavy blow at Scottish development. An examination of the new indus- trial building since 1951 shows that one-sixth of the factories erected in Scotland were govern- ment-financed.e-England and Wales have partly surmounted the difficulty created by the Govern- ment by having private companies engaged on the construction of factories for rental or amortisa- tion, but in Scotland this has been found to be impracticable,; A further pointer to Scotland's under-develop- ment in relation to modern industries is the fact that while she is at present producing twice as many technologists as the rest of the United Kingdom In proportion to her population, of the present output fewer than half remain in Scotland. However, in regard to the annual: output of National Certificate holders at both ordinary and higher levels, Scotland falls far short of England and Wales. Her industry is accordingly deficient in such people.
A scrutiny of the distribution of industry in Great Britain shows that;during the 1950s particu- larly, there has been a pronounced tendency for the burden of new industry to be located in the 'South. There is, therefore, sound reason for com- plaint that Scotland receives a disproportionate share of industrial development. It is, of course, a fair assumption that when the present amending Bill becomes law those parts of Scotland outwith the Development Area will get the opportunity of receiving government financial assistance to- wards their industrial development.
A feature of Scotland's recent economic troubles has been the decline in some of her tradi' tional industries, including jute, shale oil and sec' tions of textiles. To talk about 2 or 3 per cent. 01 unemployment in the fishing districts of the north' east coast' is simply farcical. Romantic thinkini has concealed for decades the poverty and hard' ship of those living in the Highlands. Dounreay Atomic Experimental Station is, therefore, a con' siderable economic gain for this part of Scotland It will, when completed, have a personnel of 1,800 and will help to absorb many of those dts' placed from fishing and farming. Much more emplOyment, however, is necessary to rehabilitate this area. An overall Development Authorlq seems to be the only answer.
Major projects which could be proceeded with almost immediately and would undoubtedly change the'face of Scotland's economy are :
(1) The location of the new strip mill at Grange' mouth and all that this portends;
(2) A commencement with the atomic energy scheme at Crimond to assist the north-east coastal area; (3) Acceleration of the construction of the Forth, and Tay Road Bridges providing vital lines of communication communication and giving employment to tlY/' building industry and to civil engineering; (4) Speeding up the provision of the graving docg at Greenock. This would be a tremendous factor in easing the present situation in that area and the government decision to give financial aid should make it a priority; (5) More government-financed factories to rent and special-purpose factories on amortisation terms to encourage industrialists to Scotland.
All of the social forces in Scotland are united in working for a healthy and prosperous econonlYI, integrated with that of the United Kingdom. The people, the skill, the vigour and determination are available to achieve it.
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