Getting Scotland to Work BBC Scotland Investigates


Getting Scotland to Work

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This is how many of us start the day. Many more would like to simply,

:00:11.:00:21.
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The number with no work to go to has risen sharply with the downturn,

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and it's forecast to go on rising into next year. Meaning for many

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Scots, there's little chance of a daily commute. For some of those,

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How do we get out of the state we're in and get people back into

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work? It's not that simple. It's really, really hard to try and get

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a job. I'll be asking what politicians mean when they promise

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opportunity. Politicians don't create jobs, and I think they

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mislead people if they say they can create jobs. And I'll show how

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we're competing in the global jobs market, in a way that could change

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our working lives forever. If you find you're not getting good jobs

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in Scotland, try your luck in India. You might find the climate also

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better here. Tonight, I'll be asking, where are the next jobs

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coming from, for you and your This week, the Chancellor will set

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out his Budget. He's under pressure to spark some growth into the

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economy. Growth brings jobs. A lack of it brings unemployment. That's

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why we've seen a sharp increase in the number of people looking for

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work. There are more than 2.5 million people unemployed across

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the UK. In Scotland, that's more than 200,000. Across the UK, more

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than a million young people are looking for work, unable to get

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that first job. The last time I went for a job, it was here. I

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became Business and Economy Editor for BBC Scotland. The morning I

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started work, the British banking system fell over a cliff, and the

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economy came to a juddering halt. It's been a day of turmoil on the

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financial markets. An unqualified apology. Sorry. They did going up

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to some stupid mistakes. Could this be a turn for the worse? 1,000 more

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people were looking for work than during the previous month. It shows

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the number of Scots seeking work up by 25,000. In the final three

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months of last year, there were 16,000 more Scots looking for work

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than in the previous quarter, taking the total to 201,000. While

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the financial meltdown may have left millions across the world

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looking for work, at least one group of people has been busily

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employed - politicians. These are the people we often think can fix

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the economy and create jobs. Why? Perhaps because they say they can.

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It could provide another one 400,000 homes. We use your money

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for every pound of taxpayers' money. The private sector put up about �6.

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That will safeguard 325,000 jobs. Labour will abolish youth

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unemployment by the end of the next Parliament. Jobs, jobs, jobs.

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politicians create jobs? Is it the job of our governments to step in

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and give us work? Or is their job mainly to avoid the blame?

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Government isn't the answer in terms of can you just hire more and

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more and more people. What government can do and must do is

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create the kind of atmosphere, the kind of environment, the kind of

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climate for business that makes Britain a real powerhouse for the

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future, that makes it the place that international investors want

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to come, build businesses, open plants, carrying out research and

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development, and that makes Britain a fertile place for new

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entrepreneurs to establish businesses and create jobs. That's

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the only thing that politicians can do that is sustainable and long

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lasting. So he thinks government should stay out of the way and help

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business create the jobs. Last year, Scottish Labour pledged to create

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250,000 jobs. But they didn't get elected. Do they stand by that

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promise? I certainly would agree that we need to be more

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interventionist. I would hesitate to start promising more. I think

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that people are fed up of politicians promising the earth and

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failing to deliver every time. But I think that this idea, clearly in

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my lifetime we have lived through an era where the markets were seen

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to be king. I think the lessons are that we have moved in the wrong

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direction. That actually you have to have a balance. But what of

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those who DID win power at Holyrood? I think politicians get

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into a great deal of trouble if they go around saying, you know, as

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certainly some of my predecessors have done, that, you know, we are

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going to create X, Y and Z jobs if we do this and that. Politicians

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don't create jobs and I think they mislead people if they say they can

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create jobs. Politicians are responsible for dealing with the

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economic conditions that we face and trying to make sure that those

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economic conditions are as conducive as possible to creating

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jobs. And that's the approach that What is the nature of the jobs

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problem our politicians seek to This is Patrick Tausney. He's 45,

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He's being helped by advisors with How did you get some of the

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training? Bypassed. -- I passed. Excellent. We will make sure it is

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updated with the new stuff. It is not simple laugh... These jobs are

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coming on and if they go on the JobCentre website, there will be

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150 people... We had a little laugh at this one. Picking up at the

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airports. That is another one to have a look at. That is three for

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the day. I understand the situation you're in. Before I started, I was

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getting �8 an hour. The job market is not as strong. Maybe look at

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these rates and get the applications in. Make sure the CV

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is up-to-date. Get your foot in the door. There's nothing to stop you

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I've been unemployed for 14 months. And all I have been doing is been

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on the internet, looking for work, and writing away for jobs and not

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getting any reply. Joining different contract companies and

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getting told we're just using you as a figure. So other than that,

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nothing. It makes you a bit lazy. You don't want to phone for any

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more. It depresses you. You just think "What's the point of

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phoning?" Cos you're not going to get it. Patrick has experienced

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unemployment before. He's part of my generation that left school

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during the recession of the early 1980s. Research shows that the bad

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start many faced leads to repeated spells of unemployment and lower

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pay, decades later. I left school, no exams. But you were barred from

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the buroo until September, I think it was. Before you could get any

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money. It was the period until I turned. This is 1982. Aye. So when

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I turned 16, I went to the YTS. Now remind me, YTS was Youth Training

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Scheme. Aye. Down in Clydebank, and it was environmental. Building

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paths. I enjoyed it. Outdoor work. Then I finished that. Then the

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opportunity of a community programme, I done that. Then

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another one. Bouncing back and forward. There was a lot of people

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doing that. Get yourself a good education. I was getting �25 a week.

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You don't want to be doing that. What does it do to your mindset to

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have been unemployed for more than a year? You just feel degraded. You

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want to get nice stuff for your daughter. You want to get nice

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clothes and that. You cannot give her that. You want to get stuff for

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your house, You want a fridge, which is a luxury, the buroo tell

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you. Just things like that. You miss out on things. These are hard

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times for people like Patrick. Alan Sinclair has been helping the

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unemployed find work for decades. At one time, you know, in the

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market, you could roughly get by, by brawn, muscle, you know, you

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worked on the Clyde or you had a labouring job. You know, if you

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were the bottom end of the market or towards the end, there's a lot

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of skilled people doing, you know, shipbuilding as well. But now the

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types of skills that employers are looking for at a basic level, which

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then the technical skill comes on top of, is an ability to talk and

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listen, to work with people, to solve problems. You've worked in

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government, close to government, in trying to solve employment prolems.

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What have you learned about the capacity for government to solve

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them? I think what's happened is we constantly look for short term

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fixes to employment, and to our skills issues, when the issues that

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we face are long term. They're long term because of the nature of how

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demand is changing across the world. But it's also because of the types

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of skills that our people have and do not have. Can politicians

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understand some of these problems faced by unemployed people? Do they

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even know what being out of work feels like? I've been made

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redundant twice, so I know how worrying it is, not be sure what's

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going to happen next. Not to be sure how and when you'll get

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another job. I was lucky on both occasions that I was only out of

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work for a relatively short period of time. A few weeks in one case, a

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few months in another. But it is difficult and I do understand it's

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one of the worst things that can happen to you. When I left

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university in 1986, I didn't have a job to go to and I spent the best

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part of 12 months moving between unemployment and short-term jobs. I

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had a short-term job in the gas board, and a short-term job in a

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restaurant. I had to make ends meet Opportunities to get into jobs are

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not equal. Here in Oxford, students seem to have won the lottery of

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life. While others face a tough fight to get started, many here are

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destined for a job market that generously rewards the highest

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Hertford College is the new workplace of economist, Will Hutton.

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Despite the surroundings, he's angry. We live in a country in

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which unemployment is high, rising, and going to stay high. A lost few

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years will be a lost decade. This is not because the labour market

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works badly. This is not because people aren't trying hard to find

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work, it is almost entirely because there is insufficient demand for

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goods and services, for people to buy that in turn will generate work.

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And we should be bloody angry about running an economy when we have so

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much capacity to do differently in this way. : There may be dreaming

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spires here, but there's nothing dreamy about the jobs market for

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most young people. It looks very bleak. I mean, many of them are

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having to, even if they're well educated, having to take, you know,

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internships for which they're not paid, having to build up a CV, of

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experience for which they're not being paid. If they have got well-

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off parents who will take care of them, and pay the, you know, pay

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the bills, they can do that. But for, you know, ordinary kids, it's

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really tough and they have to take whatever's on offer. And what's on

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offer is often pretty scrappy. And for people at the bottom of the

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labour market who haven't got skills, I mean, you go through what

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the jobs are like in the job centre on offer. And you can see, you know,

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not the employers don't guarantee to provide even the minimum wage,

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there's no benefits, there's no guaranteed holiday, these are, you

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know, really exploitative forms of employment in which there's

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virtually no job protection whatsoever. I mean, this is the

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labour market as we've allowed it We can be angry at those who have

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sued the markets, big business and politicians. What can we do to get

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help? In centres around the country, staff were helping people. A lot of

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people will say, I need any job. You realise that is not true, they

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may not be aware of the skills they have, what employers are looking

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for, modern recruitment procedures. We take them back again, write to

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the beginning, to find out what they have got to offer, what their

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skills are, what are they looking forward in a job? Is it a career?

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Is it a particular area that they want to be involved in? Make sure

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they are aware of what it is demanding and look at the next step

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to take them further. For many, just entering the world of work is

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hard work itself. 16-year-old David McLeod has been unemployed since

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leaving school last summer. Was its -- a shock to you when you find

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things so tough? Growing up, you always imagined yourself, I will do

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this or that Andy King did is easy. I thought I am leaving school and

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will get a job and get some work. You realise it is not that simple.

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It is really, really hard to get a job. These programmes like

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targeting pathways, they help. They get you �55 a week and stuff and

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you travel expenses. It is hard to do that because there are not many

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jobs. It used to be that each generation could hope for more,

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better, higher earnings. With big structural changes, the job market

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no longer offers that. Your dreams can seem impossibly distant. If we

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were talking about dreams, it would just be to have money, family, a

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couple of kids, nice house and car. Reality, I can see myself on

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minimum wage, maybe have once weaned or something. How does that

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make you feel? You can say that it is frustrating and stuff but that

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is how it is, one is a dream, one is a reality. Reality is that when

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you have got to face. David is in a training programme and has

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supportive parents but many school- leavers are in a worse state. The

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most recent figures show a 90,000 young Scots are seeking work. Some

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blame schools, but perhaps you have to go further back. When the age of

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about three, if I had managed to get into work in the future, you

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are a lost cause. Do your parents talk to you? Be you respond? The

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you know how to play with toys? Do you know how to play with friends?

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Do you resolve conflict? If you watch young children engaging with

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one another, they knocked lumps out of each other occasionally, but

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there is a lot of conflicts that their resolve between themselves,

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especially with a little bit of support. What about those who have

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had nurture and upbringing and for whom education has been a better

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fit? This is one of Glasgow's leading independent schools and

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this group is getting ready to leave. I have applied for dentistry

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so I will have five years of training. Afterwards, I would train

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as a dentist. Did you every think of not going to university? No.

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am sure my parents were petrified because I said I wanted to do music.

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I looked at pure physics but I decided mechanical engineering was

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what I wanted to study. It is important that you do something you

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enjoy what you are still thinking about the future. I am applying to

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biology courses at the moment and hopefully doing teaching after that.

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I have applied to history and art but I want a gap year first. I come

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from a family that has predominantly study medicine, my

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dad was a physiotherapist at my sister is studying medicine. I have

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learnt throughout my life how important education is. I need do

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this because I need a job, I need la blah blah, I need a secure

:19:32.:19:37.

future. You do something you hit? What way is that you spend your

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life? There are a lot more opportunities to work abroad.

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easier than our parents' generation. If I know people working in Germany

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and places like that. I want to work in New York. I have family

:19:54.:20:00.

there and my family are looking to move there eventually. I feel at

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the opportunities there are endless. I am grateful of how good we have

:20:06.:20:10.

got it. We are surrounded by people telling us we are never going to

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get a job and a degree World Cup and you should get a job now, I

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fear you should just do the best with what you have now and prepare

:20:18.:20:22.

for the future as best you can. There's plenty of evidence that the

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job market favours women as the values people skills over brawn.

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For these confident young women, the world of work is an opportunity,

:20:31.:20:35.

something to be enjoyed. It does not look like a series of obstacles.

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It helps to be prepared for obstacles when you hit them.

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new generation of aircraft was due to arrive this year. More than

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1,600 jobs are on the line... more than 70 years, RAF Kinloss on

:20:55.:21:01.

the Moray coast closed as an airbase last summer. Cuts in

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defence spending led to the scrappage of the Nimrod fleet. 400

:21:04.:21:10.

military and civilian staff face job losses or a move elsewhere.

:21:10.:21:15.

This is where they came together to fix this. It started as a canteen.

:21:15.:21:25.
:21:25.:21:28.

They decided they wanted to open a work club at Kinloss. They open the

:21:28.:21:35.

work club on a Monday. -- they opened. They decided to set about

:21:35.:21:41.

getting computers, tables, jobs, paper, rotas. Sure enough, on the

:21:41.:21:47.

Monday it was open and we started and have been running for a year.

:21:47.:21:50.

The Job Club is dealing with a large-scale version of a process

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many of us will face in the -- in our careers. Starting again. Many

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people have been in the military for 30 a Rob Edwards years. It is

:22:05.:22:09.

alien for them to actually start a new job but they are highly

:22:10.:22:13.

intelligent people and with a little bit of support and help, it

:22:13.:22:20.

is an easy job for them to train. Adrian Flanagan is one of those

:22:20.:22:24.

making this journey. After 26 years detecting submarines, he has been

:22:24.:22:28.

detected by the offshore oil industry. They need to know what is

:22:28.:22:36.

on the seabed. If you want to put cables on the seabed, positioning,

:22:36.:22:40.

that industry is growing, they also need to know what is on the seabed.

:22:40.:22:46.

Noise is the main medium of finding out what is there. My skills are at

:22:46.:22:52.

a premium. I initially we were shocked at the way the government

:22:52.:22:56.

was outside the military. We have had time to think about it and

:22:56.:23:02.

understand our skills are valuable. Not only have I found a job outside,

:23:02.:23:06.

my colleagues have as well and have decided to stay in the local area,

:23:06.:23:11.

which helps the local area as well as individuals. Not everyone has

:23:11.:23:16.

reached this stage. You yourself are facing redundancy? Yes, I have

:23:16.:23:20.

two months left. I have got to start looking for myself soon.

:23:20.:23:26.

anything of interest? I keep looking at the board's! I am not

:23:26.:23:30.

worried about Colin. He was in special sort -- special forces and

:23:30.:23:34.

to say he is resource for is an understatement. The uncertainty is

:23:34.:23:37.

repeated throughout the country and it is about more than does the

:23:37.:23:41.

current economic downturn. Even before be credit crunch, we faced

:23:41.:23:44.

huge changes in the way we work, driven by some of the defining

:23:44.:23:49.

forces of the modern world. One of them was technology. Another is

:23:49.:23:52.

globalisation, with barriers coming down, jobs going elsewhere and

:23:52.:23:59.

people on the move in search of work opportunities. Pawel Dziedzic

:23:59.:24:03.

is one of almost half a million Polish workers who have made been

:24:03.:24:06.

moved to Britain in the past decade. He settled in Edinburgh where he

:24:06.:24:14.

works for the city's Apex hotel group. What brought you here?

:24:14.:24:24.

lack of jobs. And lack of perspective. I was 28 and did not

:24:24.:24:31.

see myself over there to be honest. That is why I'm here. When a much

:24:31.:24:38.

lower wages? Oh, definitely. Even if I was in Poland for a couple of

:24:38.:24:45.

years, there was not enough money to keep me going. What is it you

:24:45.:24:49.

get out of the work there you do, what is most enjoyable? Obviously,

:24:49.:24:52.

getting paid every month is a motivation. What else keeps you

:24:52.:25:02.
:25:02.:25:02.

going? The people I am working wife, they are my friends. This is my

:25:02.:25:06.

third job. I'm still keeping in touch with the people I was working

:25:06.:25:12.

with in previous jobs as well. I have best friends in here and that

:25:12.:25:22.
:25:22.:25:23.

I have met in my first job. I am enjoying it as well. I have got

:25:23.:25:29.

good paid -- good feedback from people, it is a good feeling.

:25:29.:25:34.

Scotland's hospitality industry employs 175,000 workers. It is

:25:34.:25:40.

looking for a particular core skills. I am looking for the very

:25:40.:25:45.

basics. Somebody who is smart, well-groomed, who turned up on time,

:25:45.:25:50.

if not before time. Somebody who smiles naturally, someone who can

:25:50.:25:54.

hold eye-contact. I am looking for somebody who can give me examples

:25:54.:25:58.

of how they have dealt with things who have -- which are, in their

:25:58.:26:05.

life, whether that is a disagreement or have how they have

:26:05.:26:10.

lit to resolve it, how they have helped somebody in the past. I am

:26:10.:26:14.

looking to see how they deal with a scenario. I'm not looking for a

:26:14.:26:19.

bog-standard answers, I'm looking for creative answers, for a spark.

:26:20.:26:24.

When you have interviewed if you Times, you can get a bit of a good

:26:24.:26:30.

instinct as to whether someone has that sport. -- interviewed a few

:26:30.:26:38.

times. Banks, by. These are not glamorous jobs. The service culture

:26:38.:26:43.

requires consistent high standards. The awards are in pay and customer

:26:43.:26:49.

satisfaction. This woman is now a housekeeping supervisor, a long way

:26:49.:26:58.

from her training as a paramedic. If I see a smile or he -- or I hear

:26:58.:27:04.

eight, from my guests saying it was a great job, then it makes my day

:27:04.:27:09.

because I know we all worked for it, for the result. Obviously, people

:27:09.:27:19.

are coming back. That is what we won. -- what we want. Polish people,

:27:19.:27:26.

we are hard working. I have not met anyone who is avoiding work. I am

:27:26.:27:35.

quite happy with my employees. I think we always try our best. It is

:27:35.:27:40.

quite hard to get a job so if you have got it, you always try your

:27:41.:27:47.

best to do as much as you can't to get your manager satisfied. -- as

:27:47.:27:53.

much as you can. Why is it that employers choose polls and other

:27:53.:28:03.
:28:03.:28:03.

migrants when there are home-grown recruits? -- the Polish? If I look

:28:03.:28:09.

at it through a Marise, coming to a new country is a big deal. Does

:28:09.:28:12.

this need to work out? Absolutely. There has to be an aspect of, I

:28:12.:28:17.

need to give this 100% because if I do not, someone will take my job.

:28:17.:28:22.

When you hear people say there we should restrict migrant numbers, as

:28:22.:28:29.

one who employs migrants, how do you respond? It is up to employers

:28:29.:28:33.

across all industries to select the right person for the job and I

:28:33.:28:42.

don't think... I don't think they flow of migrant workers should have

:28:42.:28:46.

an impact on who you select at the end of the day. It is whoever comes

:28:46.:28:50.

in front of you and performs best on the day it will be the right

:28:50.:28:56.

person for the job. However, this is an area where politics will

:28:56.:29:03.

continue to play a role. To me, the priority is about getting our young

:29:03.:29:06.

unemployed people who have not had a job yet, those who are struggling

:29:06.:29:10.

to get back into the workplace, our priorities should be about making

:29:10.:29:13.

sure they have the skills and opportunity to get into work, not

:29:14.:29:17.

simply filling the opportunities we have in this country with people

:29:17.:29:21.

coming from overseas. I do not think that there is evidence that

:29:21.:29:26.

foreigners are taking our jobs. If anything, the fact that they are

:29:26.:29:31.

using our goods and services, are sources of employment. To blame

:29:31.:29:36.

foreigners for our condition is wrong. Let's try to get beyond the

:29:36.:29:40.

blame game. What might the answer be? Assuming you have taken all the

:29:40.:29:44.

best advice, where is your next job coming from? Really be your own

:29:45.:29:51.

boss? 274,000 Scots are now a self- employed. Is anyone out there

:29:51.:29:55.

creating a job for you? More than two-thirds of Scott's work in a

:29:55.:30:04.

private or third sector. Could Merlin healthcare is an ambitious

:30:04.:30:11.

new company. Its managing director, David Kent. My background was in

:30:11.:30:16.

corporate banking. In England and then in Scotland. In line with many

:30:16.:30:23.

other businesses at the time, in 2009, the UK credit market dried up,

:30:23.:30:26.

the credit crunch was kicking off and this was quite a negative time

:30:27.:30:30.

to be in any bank so I took the plunge. Sold my house. I did not

:30:31.:30:37.

want to be shackled by a mortgage. I joined this company and we spent

:30:37.:30:44.

a few years fire-fighting to keep the wolf from the door. We sold the

:30:44.:30:47.

business in January and we have set up Merlin and I have not looked

:30:47.:30:53.

back. These look like simple bits of brightly coloured plastic. They

:30:53.:30:59.

are in fact disposable clinical waste bins. NHS contracts can be

:30:59.:31:04.

worth millions to produce these. You push the lid on, poppet shut.

:31:04.:31:10.

It has clips underneath to put it in place. These go to hospitals,

:31:10.:31:17.

vets... Anywhere with surgeries. The Lynne curry employs six people.

:31:17.:31:22.

They hope to employ more, perhaps up to 30, within the next year.

:31:22.:31:27.

What about manufacturing? They wanted to in Scotland but the

:31:27.:31:30.

numbers only stack up if it is done cheaply in China. It is cheaper for

:31:30.:31:38.

us to make these, 10-15% in terms of final retail price, in spite of

:31:38.:31:44.

the fact you have to ship them from China, p import duty, insure them,

:31:44.:31:49.

you potentially have to wait somewhere from three to six months.

:31:50.:31:54.

You have to fund that cash flow process as well. In spite of all of

:31:54.:31:58.

these factors, it is still cheaper to make them in China than in this

:31:58.:32:02.

country. If we are looking for signs of hope, there are some

:32:02.:32:07.

places creating jobs in the downturn. This is a fabrication

:32:07.:32:12.

yard in Easter Ross. It wants pumped 100,000,000,008 -- �100,000

:32:12.:32:17.

a year into the economy. Now it carries the memories of those boom

:32:17.:32:27.
:32:27.:32:29.

You can imagine winter in 1972, where they began to create an

:32:29.:32:35.

sculpt this thing out of nothing. It was Americans, people from Texas,

:32:35.:32:43.

who came and did it. They taught Highlanders, crofters, painters,

:32:43.:32:48.

local tradesmen, howl to the oil and gas fabricators. They took to

:32:48.:32:55.

it really well. It closed nine years ago, but it was recently

:32:55.:32:58.

bought by engineering specialists, global engineering group. Douglas

:32:58.:33:02.

was in charge of getting the site open again. We will be making sure

:33:02.:33:09.

this becomes the centre, a port, a harbour, as well as fabrication.

:33:10.:33:14.

is looking to train and employ more than 1,000 people, building the

:33:14.:33:19.

renewable energy industry alongside oil and gas. Being able to be in a

:33:19.:33:23.

situation where we can bring new and exciting jobs back into

:33:23.:33:26.

engineering in the north of Scotland is a great thing to be

:33:26.:33:31.

able to do for this area. They will be able to find work in similar

:33:31.:33:36.

spheres as their parents, grandparents, who came here in the

:33:36.:33:40.

1970s. But in new industries, new engineering opportunities for

:33:40.:33:45.

Scotland. We can apply innovation and techniques we have learnt in

:33:45.:33:49.

the oil and gas. We can take them into new North Sea opportunities in

:33:49.:33:54.

the marine business. So amid all the gloom, there are some hopes to

:33:54.:33:59.

be found. Old industries can adapt and create jobs if they can get the

:33:59.:34:03.

people in. That will be good for the economy. Westminster ministers

:34:03.:34:09.

are banking on this happening. key thing, firstly, is it is

:34:09.:34:12.

already the case that the private- sector has been increasing

:34:12.:34:16.

employment across the hall of the UK over the last 18 months faster

:34:16.:34:20.

than the public sector has been reducing employment. What has

:34:20.:34:24.

happened over the last 15 years is the Labour Party in power increased

:34:24.:34:27.

steadily the number of people employed in the public sector to a

:34:27.:34:30.

level there was not affordable in the long term. That is what we have

:34:31.:34:35.

to address. We don't want to reduce employment in the public sector, we

:34:35.:34:39.

have no choice. Opponents say the unemployment statistics are

:34:39.:34:43.

evidence that that market has failed. The markets will not

:34:43.:34:52.

deliver the jobs we need as a society. For example, the Adam

:34:52.:34:56.

Smith few of the economy, this view there's an invisible hand, that

:34:56.:35:01.

these decisions are politically neutral, has now been questioned.

:35:01.:35:08.

We can see we have an economy in which the values of greed, dare I

:35:08.:35:14.

say selfishness, certainly the pursuit of wealth have over ridden

:35:14.:35:18.

The Common Good, the social good, that the economy should be there to

:35:18.:35:22.

defend and back-up. It should be based on that. What has been

:35:22.:35:29.

happening, and it is very acute in Scotland, is that 70% of all net

:35:29.:35:36.

jobs growth in Scotland, from 1997- 2007, the year before the crash,

:35:36.:35:39.

came from the public sector. A period when it couldn't have been

:35:40.:35:45.

more favourable for the private sector. Credit growth, still it can

:35:45.:35:50.

generate jobs. What the public sector was doing in those years was

:35:50.:35:54.

being an employer of last resort. What the coalition has done is

:35:54.:35:59.

remove that capacity completely. It spells a prolonged period of very

:35:59.:36:04.

high unemployment in Britain, a lost decade. The Scottish

:36:04.:36:06.

Government is aiming to avoid compulsory redundancies in the

:36:06.:36:09.

public sector. And it's pledging to spend on capital building projects

:36:09.:36:14.

like the proposed �1.6 billion new Forth Crossing. Can these measures

:36:14.:36:22.

We've had some recent comments from Morrison Construction about how the

:36:22.:36:25.

Scottish government's got its act together about capital programmes

:36:25.:36:30.

in a way the UK government hasn't. And I think that what we have also

:36:30.:36:33.

done is set out an ambitious programme of economic interventions

:36:33.:36:35.

and concentration on some key sectors of the economy, whether

:36:35.:36:38.

that's renewables and the energy field in general, or the life

:36:38.:36:40.

sciences sector, or financial services or creative industries, or

:36:40.:36:50.

tourism and leisure. So all of these key sectors, and that focus

:36:50.:36:52.

on making things happen in Scotland, create the conditions in which

:36:52.:36:58.

business can prosper. But crucially, there has to be a more confident

:36:58.:37:08.
:37:08.:37:10.

economic climate in which those Many of the sectors that could and

:37:10.:37:14.

should grow in Scotland depend on new technologies. Now, my work's

:37:14.:37:16.

changed hugely in the quarter century since I trained on a

:37:16.:37:22.

typewriter. Now I depend on email, and on this smart phone. I can take

:37:22.:37:26.

my office anywhere. Work any time. But the telecom connections that

:37:26.:37:30.

work for me can also work for other people a long way off. If things

:37:30.:37:34.

can be done on a screen like this, they can be done anywhere around

:37:34.:37:44.
:37:44.:37:50.

India is driving big change for workers all around the world.

:37:50.:37:53.

Beyond the stereotype, you'll find what's happening here is affecting

:37:53.:38:01.

An awesomely diverse nation of 1.2 billion people, the trading culture

:38:01.:38:11.
:38:11.:38:14.

In this Tibetan market in old Delhi, traders come down from their

:38:14.:38:24.
:38:24.:38:28.

Himalayan hill towns each winter. It's the foundation on which

:38:28.:38:38.
:38:38.:38:42.

they're building another, modern Almost everywhere you go in India,

:38:42.:38:45.

you're assaulted by the heat and the dust and the chaos,

:38:45.:38:50.

particularly of the traffic, and the smell of food cooking. This is

:38:50.:38:55.

the very heart of India's capital, Delhi. It's not typical. I'm not

:38:55.:38:59.

sure anywhere is. But it shows some of the layers of the modern India.

:38:59.:39:02.

There's still the poverty there, the people begging. But there's

:39:03.:39:05.

also the international brands, and the new middle class who come to

:39:06.:39:09.

spend a lot of money here. There's roughly 300 million people in that

:39:09.:39:12.

new middle class with money to burn. That's the same population of the

:39:12.:39:16.

United States. And you can sense from them and where they're

:39:16.:39:19.

spending their money on those international brands that this is a

:39:19.:39:23.

city which sees itself increasingly as a world city at the heart of an

:39:23.:39:32.

Over the past ten years, India has seen rapid growth. Up to 9% a year.

:39:32.:39:36.

It's growing its own global corporations. And it's in places

:39:36.:39:38.

like this, one of the country's many business schools, where

:39:38.:39:41.

India's smart young graduates are learning to be the future masters

:39:41.:39:51.
:39:51.:39:57.

Wonderful education. They are trying to identify various segments.

:39:57.:40:03.

Population makes very nice. Population density, very nice.

:40:03.:40:06.

school sits in an area near Delhi where 80,000 students are finishing

:40:06.:40:09.

their business education. They're looking abroad for the best

:40:09.:40:15.

expertise. And look who's providing it. This is Strathclyde

:40:15.:40:17.

University's first move into India's vast higher education

:40:17.:40:22.

market. This purpose-built campus currently houses just six students

:40:22.:40:28.

on a pilot year. In a few months, the first full cohort begins. And

:40:28.:40:31.

within a couple of years, that will grow to 300 undergraduate and MBA

:40:31.:40:40.

students. Laxmana Sandeep is one of the first. I was already aware of

:40:40.:40:42.

Strathclyde's reputation in Glasgow, so I sent them a mail inquiring

:40:42.:40:45.

about their Indian programme, but once they said that they were

:40:45.:40:53.

opening an Indian campus, I just fell off my chair with joy. So,

:40:53.:40:55.

being in India and getting UK's education, I mean, that was

:40:55.:41:02.

something like an icing on a cake. I'm going to ask you a question.

:41:02.:41:06.

It's a bit like being in a job interview, but where do you think

:41:06.:41:10.

you'll be in five or ten years' time? I will be a manager who will

:41:10.:41:13.

be dealing with the issues related to finance, because finance is my

:41:13.:41:23.
:41:23.:41:24.

interest. I would see myself as a manager. Where are you going to

:41:24.:41:29.

work? Is it in India, or are you going to be overseas? In India.

:41:29.:41:34.

not overseas? Overseas? Let me start off in an Indian company and,

:41:34.:41:44.
:41:44.:41:45.

afterwards, I'll be more geared up A place here is a big investment

:41:45.:41:49.

for their families. They take it very seriously. Because there's a

:41:49.:41:54.

lot of competition. The potential of India is the population of youth.

:41:54.:41:58.

If I am not mistaken, India has got the most number of youths that is

:41:58.:42:02.

below 25 in the whole world. This gives a huge competitive edge over

:42:02.:42:06.

countries like China. Which is the main competitor of India currently.

:42:06.:42:09.

The people are modern, they are outgoing, they know what the

:42:09.:42:12.

changes are going in the external market and they know how to compete

:42:12.:42:17.

with each other. Professor Bhimaraya Metri is Dean of the

:42:17.:42:23.

Business School. So education is important in India because you know,

:42:23.:42:26.

you see last, you know, half decade or so the country's growing faster

:42:26.:42:33.

than the many leading economies, you know. It is, if you look at the

:42:33.:42:38.

growth of economy, is faster in... India is second fastest growing

:42:38.:42:43.

economy. And, the second most reason, I think the population, you

:42:43.:42:46.

know, more than, you know, you can say 54% of Indian population is

:42:46.:42:50.

less than 30 years of age, so the youngest population is more and all

:42:50.:42:52.

have to you know, in India mostly everybody undergo the higher

:42:52.:43:02.
:43:02.:43:15.

The sheer scale of what's happening is pretty staggering to a visiting

:43:15.:43:19.

journalist. Economic commentator Paranjoy Guha Thakurta has been

:43:19.:43:29.
:43:29.:43:29.

watching India's clamour for See, for one section of India,

:43:29.:43:34.

they're already living in California. But I think even this

:43:34.:43:37.

section of India realises that there's at least a third of India,

:43:37.:43:43.

which is living in sub-Saharan Africa. As a result of which,

:43:43.:43:46.

there's one section of India, the urban upper classes and the upper

:43:46.:43:49.

middle classes, the elite in India, they're sort of raring to go, they

:43:49.:43:53.

want to tell the world that, you know, we can hold our head high in

:43:53.:44:03.
:44:03.:44:03.

the community of nations. We are as good as anybody in the world.

:44:03.:44:06.

India's traditionally protected its markets - its firms selling to

:44:06.:44:11.

other Indians. But it's now targeting those services which can

:44:11.:44:14.

be traded internationally. That's opened some jobs to global

:44:14.:44:24.
:44:24.:44:34.

Shall I sit here? The things I do for the BBC! Let's hope Sweeney

:44:34.:44:44.
:44:44.:44:46.

There is one thing that cannot be outsourced to India and did his

:44:46.:44:51.

hairdressing and for the services. -- it is. It has to be done very

:44:51.:44:56.

close to home. That is why there is not much risk of British

:44:56.:45:00.

hairdressing were Barbara's being sourced anywhere in India. --

:45:00.:45:08.

Barbara's. India's emerging middle class is booming by selling

:45:08.:45:11.

services to us in the rest of the world. One of the most successful

:45:11.:45:21.
:45:21.:45:26.

services is BPO. Som Mittal speaks on behalf of the sector. We employ

:45:26.:45:36.

white collar, highly skilled professionals. Talent is our entry

:45:36.:45:45.

standard. We have a very large pool of talent. This year, we would

:45:45.:45:50.

expect 650,000 trainers to pass out from our colleges and about one

:45:50.:45:55.

million new people will enrol. Capacity is being built in terms of

:45:55.:46:05.
:46:05.:46:06.

education. This is where the huge challenge comes were as back home.

:46:06.:46:11.

Some UK businesses are bringing back their call centre operations.

:46:11.:46:15.

The cost advantages were outweighed the -- by language barriers and

:46:15.:46:20.

quality. That does not stop work for migrating to India. It is not

:46:20.:46:25.

what it's done at the end of a phone line that matters. Almost

:46:25.:46:31.

anything handled on screen can be handled anywhere there are skilled

:46:31.:46:35.

workers. This is a business processing camp was run by Tata

:46:35.:46:41.

Consultancy Services just outside Delhi. They employ a quarter of a

:46:41.:46:48.

million people. 7,000 are based here. They manage and analysed

:46:48.:46:55.

research data from major US pharmaceutical companies. Do you

:46:55.:47:00.

think that people around the rest of the world, he quite often

:47:01.:47:05.

associate India with call centres, have they got the wrong idea?

:47:05.:47:14.

is not totally right. We have a major chunk of Indians working in

:47:14.:47:22.

BPOs but they have shifted now. We have technical expertise and

:47:22.:47:32.
:47:32.:47:32.

software skills as well. In BPO, you use the software skills. When

:47:32.:47:36.

you think your career is going to go? You do not have an MBA. You

:47:36.:47:44.

want to get one? Not right now but, yes. Does everybody here want an

:47:44.:47:49.

MBA? It is not an given but it is an interest. I think I will, but

:47:49.:47:56.

after four years. You have good years, what happens next? I am

:47:56.:48:06.

looking for a Rome. This offer -- and his company offers flexibility.

:48:06.:48:13.

You can change a work so I am looking for more aspirational roles.

:48:13.:48:20.

It looks like a standard canteen, for those who like curry. Just

:48:20.:48:24.

about everyone here is an Engineer, scientist or business graduate.

:48:24.:48:31.

There are few limits to the kind of work that can be brought to places

:48:31.:48:34.

like this, from peril and accounting to legal services and

:48:34.:48:43.

data analysis. -- pay roll. They work at American time-zones, their

:48:43.:48:47.

minds are set to double. They are confident about themselves, their

:48:47.:48:55.

future. My friends are in the US and the UK. What they presume about

:48:55.:49:00.

India is that it is a land of snakes and desert and an educated

:49:00.:49:06.

people and stuff like that. But it is not like that. India is

:49:06.:49:12.

something other than what the world use it to be. It is going to be a

:49:12.:49:20.

huge power in the coming years. These people are breaking down

:49:20.:49:22.

barriers and competing with a new generation of Scots and others

:49:22.:49:27.

around the world. They are competing hard with high skills at

:49:27.:49:32.

lower cost, and that worries already strained Western government.

:49:32.:49:37.

Thanks to the great recession, the issue has become hotter. Bangalore

:49:37.:49:41.

is a dirty word. Barack Obama talks about jobs in Buffalo, not

:49:41.:49:48.

Bangalore. If standards of living are no work, if people are willing

:49:48.:49:57.

to work harder for a lower wages, then that is the way of the world.

:49:57.:50:05.

40% of the population of this planet live in India and China.

:50:05.:50:08.

From the point of view of somebody in Scotland whose job could move to

:50:09.:50:14.

India, what would you say? You have to reset -- accept reality. If

:50:14.:50:19.

reality is harsh, it is better to recite -- except it and run away.

:50:19.:50:22.

If you find you're not getting the jobs in Scotland, try your luck in

:50:22.:50:32.

India. You might find a climate also better here! Britain's

:50:32.:50:36.

relationship with India is a long and complex one. This was a great

:50:36.:50:41.

global economy long before it was colonised. Like its Chinese labour,

:50:41.:50:47.

it is becoming one again, largely on Asia's terms. It can be hard to

:50:47.:50:51.

make sense of India. Somebody once said that whatever you think about

:50:51.:50:55.

it, the opposite is also probably true. One thing beyond doubt is his

:50:55.:51:00.

is a country shaving our futures. It is clearly an Asian civilisation

:51:00.:51:04.

but it is also a very young country and the attitude of M People are

:51:05.:51:08.

striking. There is a sense that there is no limit to what they can

:51:08.:51:15.

achieve. There is a terrific self- belief. That is a bigger challenge

:51:15.:51:19.

than I am have -- I had expected to those of us in our -- in the West

:51:19.:51:22.

to our way of life and thinking. Trade brings advantages back to

:51:22.:51:29.

Scotland. Indians invest in business, this he escorts, more in

:51:29.:51:38.

Jane tourists. -- whisky exports and more in the interests. --

:51:38.:51:47.

Indian tourists. We should be getting used to change. I do not

:51:47.:51:51.

have to come far from my office to see how much the economy has to

:51:51.:51:55.

change in Glasgow. This used to be a quayside where sugar, cotton and

:51:55.:52:00.

tobacco came up the Clyde from Britain's colonies. Shipbuilding

:52:00.:52:04.

and other industries would said exports down the Clyde. That

:52:04.:52:09.

industry has declined. This became a relic -- regeneration site. Since

:52:09.:52:15.

then, you can see the symbol and the reality of how much Glasgow has

:52:15.:52:19.

changed. The conference centre and hotels, which represents a

:52:19.:52:23.

hospitality and leisure industry, the big employer in Scotland.

:52:23.:52:28.

Glasgow University, the knowledge economy, vital to our future. And

:52:28.:52:35.

this has become a digital quarter for a creative industries. There is

:52:35.:52:39.

a lot of waste land, which is awaiting the up turn for new

:52:39.:52:45.

buildings. That move from an old to a new economy shows that Scotland

:52:45.:52:49.

has resilience and you can see that resilience in individual workers as

:52:50.:52:59.
:53:00.:53:01.

well. 30 years ago, this was my first job. As a student, I would

:53:01.:53:06.

pick up seasonal work as a post van, a good way to earn extra cash. It's

:53:06.:53:09.

delays. A lot of people are choosing these jobs. Most years,

:53:09.:53:13.

the Royal Mail get 70,000 applications for Christmas work.

:53:13.:53:19.

This year it got 110,000. Jamie Duff the job all year round. He is

:53:19.:53:25.

a good example of an adaptable worker. You had a career in

:53:25.:53:30.

buildings management. What put you off? To many are as, unsociable

:53:30.:53:38.

hours. I had a young family and I was missing out. I decided to

:53:39.:53:45.

change. It has worked for you in that you are now working the are is

:53:45.:53:49.

that you want to be working in a job to find fulfilling? -- working

:53:50.:53:56.

the hours that you want to be working. It is hard work. I am good

:53:56.:54:06.

for a laugh as well. He is thinking about the future. My children are

:54:06.:54:15.

19, 16, 12, 11 and two. By that is quite a handful! 1 is studying for

:54:15.:54:25.
:54:25.:54:25.

a? At university to be a teacher. My oldest boy is creative, he could

:54:25.:54:33.

be a joiner or a cut but is also involved in sports. The 12-year-old,

:54:33.:54:43.
:54:43.:54:43.

he excelled at sport as well. would not say I was a pushy parent

:54:43.:54:47.

but I would much prefer that they did something that they enjoyed

:54:47.:54:55.

done something that they hated. did not know what they meant when

:54:55.:55:04.

they said �30 tapes would be the maximum... That would be bribery!

:55:04.:55:10.

Jamie is adaptable, upbeat and resilient. Is that what you need to

:55:10.:55:15.

get and keep a job? The thing I always say to anyone looking for a

:55:15.:55:19.

job is don't lose heart, believing yourself, believe you can do mid.

:55:19.:55:24.

There is an opportunity out there for everyone. I said that to a

:55:24.:55:28.

panel of young people I talked to on the BBC Newsnight programme. A

:55:28.:55:31.

few weeks later I have an e-mail from one of them he said, you were

:55:31.:55:35.

right, I did think long and hard and believed in myself and have

:55:35.:55:39.

just got my first job and it is great. When that happens, it is

:55:39.:55:45.

worthwhile. People have to remain very focused on trying to get back

:55:45.:55:49.

into the labour market. They have got to remain on the front foot. I

:55:49.:55:56.

know it is difficult. I know it is difficult. It is the case that

:55:56.:56:00.

economic conditions will improve and that people may be need to

:56:00.:56:06.

retrain to get into employment. The opportunities are there to do that

:56:06.:56:09.

and big government wants to create the best economic conditions to

:56:09.:56:14.

create new jobs in Scotland. As we have learned, the challenge goes a

:56:14.:56:22.

long way beyond politics. The 21st century, we will be experimenting

:56:22.:56:26.

with new social forms. Trade unions stewed transmute into organisations

:56:26.:56:36.

which they themselves hire out the people they employ eight to this

:56:36.:56:42.

unstable world of the private sector. -- in Foy at. It will

:56:42.:56:48.

charge their services to the private sector. We have got to be

:56:48.:56:53.

intuitive about social institutions and not sit on our bombs and say,

:56:53.:56:59.

this is the world as it is, it cannot be changed. We need civil

:56:59.:57:04.

society to come up with answers and trade unions to come up with

:57:04.:57:14.

answers and for government to be imaginative and innovative. I have

:57:14.:57:24.
:57:24.:57:25.

two images. I remember city and were oofle dust. -- I remember city.

:57:25.:57:31.

The other image is politicians see themselves as in charge of some

:57:31.:57:35.

great signal box in the sky. That they can pull a lever and that it

:57:35.:57:42.

will go that way in change. It does not happen quite as short term as

:57:42.:57:50.

that. The end of our working day, for some, a blurring of the

:57:50.:57:54.

boundaries were work stops and the rest of our lives starts.

:57:54.:57:59.

Technology gives millions of us the freedom to take work home, anywhere,

:57:59.:58:03.

anytime. For many people it is not freedom. If you are lucky enough to

:58:03.:58:08.

have a job you may find you are working harder and love Ferraris.

:58:08.:58:15.

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