Scottish unemployment rises

Scottish unemployment rose over the last quarter by 0.6 percentage points but remains down by 0.4 percentage points over the year to stand at 5.3 per cent, according to the latest labour market statistics, published by the Office for National Statistics for August to October 2016.

The data shows that Scotland continues to outperform the UK on female and youth employment rates and it is the second highest employment rate out of the four UK nations.

There are 28,000 more people in employment than at the pre-recession peak.

Liz Cameron, Director and chief executive, Scottish Chambers of Commerce, said: “The rise in Scottish unemployment is an indicator of what could be expected in the economy as we look ahead to 2017. Triggered by uncertainty over Brexit and the increasing costs of doing business, these are potential signs that the labour market is cooling down.

“As businesses plan ahead to manage uncertainty, both the Scottish and UK Governments can take immediate action to provide reassurance to businesses. The UK Government must guarantee that existing EU workers can stay and work in the UK, and the Scottish Government, has a golden opportunity during the Budget announcement tomorrow, to tackle the rising costs of business rates and provide a boost to business just when we need it most.”

Minister for employability and training Jamie Hepburn, said: “These figures show that the Scottish Labour Market is resilient in the face of notable economic headwinds. I’m encouraged to see that Scotland is continuing to outperform the rest of the UK on female and youth employment.

“While the unemployment rate fell over the year, it’s concerning to see a rise over the last quarter.

“We have the second highest employment rate out of the four UK nations, but it is clear that result of the EU referendum has created uncertainty and weakened economic progress.

“In recent months we have announced steps to invest an additional £100 million in capital projects in this financial year to help stimulate growth and support jobs, and we are establishing a new £500 million Scottish Growth Scheme to support in particular small and medium enterprises.

“We are taking action to support the resilience of the Scottish economy and remain determined to pursue every avenue to secure Scotland’s continued place in Europe and the stability, jobs and investment that come from being part of the world’s biggest single market.”

Latest Data for Scotland:

Employment

The Labour Force Survey indicates that the number of people in employment in Scotland from August to October 2016 was 2,592,000. Employment was down by 40,000 compared to the previous three months, and by 24,000 compared to the same quarter last year. The employment rate was down 0.8 percentage points on the previous quarter, and down by 1.0 percentage points compared the same quarter last year. By comparison, the Scottish employment rate is below the UK average of 74.4 per cent.

Unemployment

Unemployment in Scotland was up by 14,000 over the quarter August to October 2016 at 145,000. The level was down 14,000 on the same quarter last year. The unemployment rate was up 0.6 p.p. on the previous quarter at 5.3 per cent, which is down 0.4 p.p. over the year.

Jobseeker’s Allowance and Universal Credit

The number of people claiming Job Seeker’s Allowance (JSA) fell by 200 to 54,100 in November 2016. The level is down by 12,500 on November 2015. The claimant count level (JSA and Universal Credit) is down 200 over the month at 83,400 and the rate is unchanged over the month and up 0.2 p.p. the year to 3.0 per cent.

Economic Activity

The number of economically active (defined as those in employment or ILO unemployed, and seasonally adjusted) in Scotland in the August to October 2016 quarter was 2,737,000. This was down 25,000 on the previous quarter, and by 38,000 on prior year levels. Among those aged 16-64 the economic activity rate was 77.5 per cent, down 0.4 p.p. on the previous quarter, and down 1.4 p.p. over the year.