Scottish employment up by 8000

The labour market statistics published today by the Office for National Statistics also show unemployment in Scotland increased by 6,000 in the period October to December 2016, however it remained down 27,000 over the year and now stands at 135,000.

The Scottish unemployment rate is 4.9 per cent, which is above the rate of 4.8 per cent for the whole of the UK.

The Scots employment rate increased by 0.1 p.p. over the quarter to 73.6 per cent, this rate is below the UK average of 74.6 per cent.

The ONS said economic activity north of the border increased by 13,000 over the quarter and now stands at 2,746,000, while the economic activity rate decreased over the year to stand at 77.6 per cent.

In January 2017, the number of people out of work and claiming Jobseeker’s Allowance in Scotland was 50,100, and claimant count, including Universal Credit was 76,400.

Meanwhile, Scotland’s youth unemployment rate is now the lowest since records began – the second lowest youth unemployment rate in the EU.

Secretary of State for Scotland, David Mundell, said: “There is cause for some cautious optimism about the state of Scotland’s labour market, with employment up and more women returning to the labour market.

“However, declining economic activity during the last 12 months, and the gap between the Scottish and UK labour markets, remains a concern.

“We have devolved a raft of new powers to the Scottish Parliament. It now needs to use those levers to strengthen the Scottish economy.”

Minister for Employability and Training Jamie Hepburn, said: “These figures are encouraging and show that Scotland’s labour market remains resilient. We are working to build an economy where everyone can share in the benefits of economic growth. It is therefore encouraging to note this rise in the number of people in work alongside some positive statistics on female and youth employment, where we continue to lead the UK. In terms of low youth unemployment rates, we are second only to Germany within the EU.

“Scotland enjoys resources few nations can match, including one of the most highly educated workforces in Europe, a long standing reputation for innovation and an internationally-recognised brand.

“There is no doubt that businesses have faced increased economic uncertainty in the months following the EU referendum result, and Scotland is not immune to these risks. We have set out our commitment to protecting Scotland’s interests, including maintaining our place in Europe’s single market, which is so essential to our future prosperity.

“We will continue to support the Scottish economy, including by taking forward our £500m Scottish Growth Scheme – targeting high growth, innovative and export-focused SMEs; by expanding our small business bonus scheme, which will lift 100,000 business properties out of business rates; and investing in our infrastructure plan.”

Liz Cameron, chief executive of Scottish Chambers of Commerce, said: “These figures underline the need to focus resources on those who are currently unemployed and recently unemployed; to enable them to become equipped with the skills that our businesses need right now. We are still detecting significant skills shortages across a range of sectors and, in these circumstances, Scotland’s employment rate really ought to be closing the gap with the UK as a whole.

“We need to get more of Scotland’s people back into productive work as quickly as possible and that will mean not just addressing the needs of young people, but workers of all ages whose skillset may need to be adapted to meet business demand for talent.”