Mixed picture as Scotland sees rise in employment and unemployment

Scotland’s employment rate grew to 75.2 per cent between July and September while unemployment also rose slightly by 2,000 between over the same period, marking an increase of 0.1 per cent.

There are now 2,652,000 people aged 16 years and above in employment in Scotland where unemployment stands at 4 per cent - which is below the UK average of 4.3 per cent.

The jobless total across the UK as a whole fell by 59,000 between July and September to 1.42 million.

Scotland’s minster for employability and training Jamie Hepburn, said: “These latest employment figures are encouraging and show Scotland has higher employment rates and lower unemployment rates than the UK with 88,000 more people in employment compared to the pre-recession peak.

“Youth unemployment rates continue to outperform the UK. This comes on top of us fulfilling our commitment to reduce youth unemployment by 40%, four years ahead of schedule.

“While these figures are positive we recognise there are still many barriers to getting people into work and are continuing to work to improve labour market conditions.

“Our new devolved employability support programmes are supporting people into work, whilst our ambitious new target to make Scotland a Living Wage Nation will promote fair pay.

“Today’s figures also show the Scottish labour market continues to perform well against a difficult backdrop, echoing the most recent State of the Economy Report which shows growth over the first half of 2017, with forecasts remaining positive for the future.

“However, the lack of clarity from the UK Government on Brexit poses the biggest threat to our economy and we will continue to call on the UK Government to give people and businesses greater certainty.”

Liz Cameron, Chief Executive, Scottish Chambers of Commerce, said the latest ONS statistics provided a “mixed set of results”.

She said: “The current estimate for productivity has seen output per hour increase by 0.9 per cent, in comparison to a fall of 0.1 per cent in the second quarter of the year. Although it is welcome news to see productivity growth across the economy, this continues to persist at a level which lags previous norms.

“Today’s Labour Market Figures also displayed a mixed set of results. At a national level, average weekly earnings continued to grow at 2.2 per cent, maintaining the trend of wage rises which haven’t kept pace with inflation.

“Although the unemployment figures continue to paint a picture of a strong labour market, there are some slight indications of concern. In a UK context, it is worth noting that employment has fell alongside unemployment in this period, translating to an increase in the economic inactivity rate of 0.3 per cent.

“Furthermore, Scotland has demonstrated a deviation from this national trend, with a slight increase in the unemployment rate of 0.1 per cent, and a fall in the number of economically inactive individuals.

“Although these statistics still broadly suggest a labour market in good health, weak wage growth will continue to impact on consumer spending while inflation holds at current levels.

“Our focus remains on the upcoming UK budget, in which the Chancellor has an opportunity to address some of the key structural issues constraining productivity growth. Targeted investment in the UK’s skills base and infrastructure will reinvigorate business confidence, leading to increased wages and boosted consumer spending – the engine which drives the UK economy.”