Scottish unemployment falls as youth employment rises to decade high

The Office for National Statistics said the unemployment rate now stood at 5.6 per cent which is currently in line with the UK as a whole.

The figures also showed youth unemployment fell by 7,000 to reach 14 per cent, the lowest since April-June 2008.

And youth employment grew by 20,000 to 363,000 - the highest since the same period a decade ago.

Employment fell overall by 11,000 over the quarter, to stand at 2,611,00, although the Scottish employment rate of 74.1 per cent is higher than UK average of 73.4 per cent.

UK unemployment in the April to June period was 1.85 million, up 25,000 from the previous quarter, according to the figures.

The latest release of Quarterly National Accounts Scotland was announced today by Scotland’s Chief Statistician also showed that during the twelve months to March 2015, onshore Scottish Gross Domestic Product (GDP) is estimated at £141 billion in total, or £26,400 per person.

When including a population share of UK extra-regio (offshore) economic activity, Scottish GDP was estimated at £143 billion in total, or £26,700 per person.

Household Final Consumption Expenditure, meanwhile, increased by 4.9 per cent in current prices (not adjusted for inflation) compared to the first quarter of 2014.

And Gross Disposable Household Income increased by 3.8 per cent compared to the first quarter of 2014, in current prices (not adjusted for inflation).

Liz Cameron, Director and Chief Executive of Scottish Chambers of Commerce, said: “It is good news that unemployment in Scotland has fallen again, with our overall unemployment rate of 5.6 per cent matching that of the UK as a whole. This news underlines the increased optimism that we are picking up from businesses across Scotland.

“However as unemployment falls, the potential impact of skills shortages rises. As business picks up, demand for skilled workers increases and with unemployment at low levels, this makes suitably skilled workers more difficult to find. The priority for our governments now must be to ensure a supply of skilled workers for our growing businesses to recruit.

“The Scottish Government must focus efforts on delivering the right skills through education and training, including upskilling those who are currently unemployed and do not have the skills that businesses are looking for; the UK Government must enable access to skills from overseas workers, including those who are educated and trained in Scotland’s universities; and businesses must make best use of available skilled individuals, including the disabled and those requiring more flexible working patterns.

“A successful economy throws up its own challenges and matching businesses and skills must be the priority for the coming years.”

Fair Work, Skills and Training Secretary Roseanna Cunningham, meanwhile, welcomed the figures, which she said were “encouraging signs of an improving economic landscape in Scotland”.

She added: “Our priority is to maintain that progress and tackle those areas where we need to see further improvement.

“For example, there was a slight fall in all-age employment and a small rise in economic inactivity - although we continue to outperform the rest of the UK in these measures.”

The Scotland Office Minister Andrew Dunlop said: “Today’s figures show unemployment falling and wages continuing to rise well above inflation. This shows we are working to ensure everyone benefits from a growing economy as we build a country based on security and opportunity.

“We will continue to help businesses create jobs and support those who want to work hard and get on. The introduction of our National Living Wage will ensure work pays for everyone across the country.”

The statistics follow on from data last month showing the economy grew by 0.6 per cent in the first three months of this year.