Scotland’s unemployment rate continues to rise

Latest figures released today by the Office for National Statistics showed that the jobless total went up by 8,000 between January and March to stand at 169,000.

At the same time, UK unemployment fell by 2,000 to 1.69m.

Employment in Scotland fell by 53,000 over the three months to March to stand at 2,578,000.

The Labour Market Statistics for January to March 2016 show Scotland’s employment rate is now 73.1 per cent, the second highest of the four UK nations but below the UK average of 74.2 per cent.

The jobless rate north of the border is now 6.2 per cent, which also compares unfavourably with the 5.1 per cent for the whole of the UK.

The inactivity rate, measuring those who are not in work and not actively seeking work, rose by 1.3 percentage points over the year to reach 22.0 per cent.

However, the statistics also showed the number of people claiming Job Seeker’s Allowance (JSA) in Scotland fell by 600 between March and April to 57,400 - 21,100 fewer than a year ago.

And Scotland’s female employment, unemployment and inactivity rates continue to outperform the UK.

The figures show that Scotland’s female employment rate of 70.1 per cent remains above the UK rate of 69.2 per cent.

Cabinet secretary for fair work, skills and training, Roseanna Cunningham, said: “Today’s statistics highlight ongoing challenges in Scotland’s labour market. Despite this, there are 141,000 more people now working in Scotland compared to the low during the recession.

“We saw record numbers in employment in Scotland during 2015 but employment rates are perhaps now starting to reflect the current economic challenges we are facing, in particular in the oil and gas industry.

“While our unemployment rate continues to be higher than the UK as a whole, our employment rate is 73.1 per cent, which is the second highest in the four UK nations.

“Rates of female employment, unemployment and inactivity continue to outperform the UK, which is welcome, but we know we must do more to increase the numbers of women getting into good quality, full-time employment.”

Secretary of State for Scotland, David Mundell, said: “These figures are a reminder of the real challenges facing Scotland’s economy. We know that we are experiencing a global economic slowdown, exacerbated in Scotland by the current downturn in the oil and gas sector. It is now more important than ever that Scotland’s two governments work together to do everything possible to boost the economy, create jobs and increase prosperity. The UK Government has an ambitious plan to support economic growth right across the country, investing in the infrastructure we need and backing businesses. That includes investing in UK City Deals across Scotland.”

Colin Borland, the Federation of Small Businesses’ head of external affairs in Scotland, said: “Today’s unsettling jobs figures should trigger an amber alert for Scotland’s governments.

“The decline in the oil and gas industry is obviously a factor – with the impact now being felt beyond the north of the country and the immediate supply chain.

“But, right across the economy, many small businesses are grappling with a raft of new regulatory changes, including the National Living Wage and new pension rules. These changes may be dampening recruitment intentions in our vital service sector.”