Benefits Claims Soar in Wake of North Sea Oil Crisis
The number of people claiming out-of-work benefits has soared in the north east in the wake of an oil crisis which has cost more than 70,000 jobs, new research shows.
The Scottish Parliament Information Centre found a fall in the number of house sales and planning applications, as well a drop in the number of people staying in hotels.
Researchers focused on the economic impact of a drop in the average price of a barrel of oil from more than $100 in July 2014 to around $30 this year.
They looked at the “claimant count” in Aberdeen and Aberdeenshire, which includes people claiming jobseeker’s allowance and those claiming universal credit who are out of work.
The latest figures show the number of claimants in Aberdeen increased by 69% and 92% in Aberdeenshire over the year.
Despite the dramatic increase, the rate for both areas remains below the Scottish average.
The research found the annual change in residential property sales in the north east has been negative for the last 18 months, in contrast to Scotland as a whole where it has been positive for the last nine months.
The number of planning applications received by both councils in January 2016 was a fifth lower compared to the previous January.
Meanwhile, the hotel room occupancy rate in Aberdeen fell to 51.6%, marking the 15th consecutive month of year-on-year losses.
Researchers also looked at figures from the Committee of Scottish Bankers on the number of new businesses setting up bank accounts.
The number of start-ups in Aberdeen fell by 12% between the third quarter of 2014 and the same period in 2015, while in Aberdeenshire there was a reduction of 8%. The decrease compares to a Scotland-wide rise of 10% over the same period.
