Could fall in unemployment be good news for consumers in debt?

A drop in unemployment levels in Scotland could mean some consumers can now get to grips with their debt problems.

According to the Scottish government, first minister Alex Salmond welcomed this further fall, which revealed a decline of 11,000 over the period between March and May this year.

This is the eighth reported drop in a row – the first time since between December 2009 and February 2010 that joblessness in Scotland has been under the UK level.

As a result, the country now has a lower level of unemployment than the nation overall, in addition to higher employment and a lower rate of economic inactivity.

Mr Salmond said this was indicative that the Scottish government's economic policy was working and seems to be continuing to make and protect positions across various communities.

He warned, however, that there must be no complacency as a result of this good news.

Mr Salmond added that more needed to be done to support job creation and secure investment to drive Scotland's economic activity to full recovery.

"We now have lower unemployment, higher employment and a lower rate of economic inactivity in Scotland than the UK as a whole – and the lowest joblessness rate in Scotland for 18 months, with the eighth consecutive reported fall," he stated.

This follows news from the Daily Telegraph that overall UK debt is set to pass 110 per cent of the gross domestic product within 50 years.

Debt levels are currently at 60.6 per cent of this – which is the equivalent of £920 billion.

By Amy White