Further job losses have been announced in the textile industry

In the UK, the latest unemployment figures show a rise of 12,000 in the three months to September although the number of people out of work and claiming benefit was down by more than 3,000.

The Scottish Secretary, Alistair Darling, conceded that unemployment in Scotland had risen but said there were still encouraging signs despite difficulties in some sectors of the economy.

Speaking at the Scottish Grand Committee, he said there were good reasons for optimism and output in Scotland was still growing.

The figures were published on the same day that job losses in the Borders textile industry were announced.

Dawson International confirmed that it is seeking 33 redundancies which will be split between its Innerleithen and Hawick workforce.

It is not known yet how the job losses will be divided between the two plants. The current workforce stands at 423 but will be reduced to 390.

Dawson chairman Mike Hartley said the need for job losses was "regrettable but necessary" to reduce the cost base and allow the company to compete effectively in today's global marketplace.