Scottish unemployment rises for second time in three months

Official data published today shows that the unemployment rate increased by 0.3 per cent to 4.1 per cent, marking the second successive fall in employment during the three months to October, which analysts said suggests that persistent lacklustre economic growth and appreciable economic and Brexit uncertainties are currently reining in the labour market after a strong performance over much of 2017.

Recruitment challenges also appear to be limiting employment growth in some sectors.

According to the Office for National Statistics (ONS) figures, the number of people aged 16 and over who were in work fell by 21,000, to 2,653,000.

For the UK as a whole, unemployment declined by 26,000 to 1.43 million, while the jobless rate remained at 4.3 per cent.

In Scotland, female unemployment fell by 15.8 per cent over the period to 39,000. In contrast, the number of men without a job went from 59,000 to 74,000 - a rise of 25.5 per cent.

However, despite the quarterly decline in employment, the annual employment rate north of the border has increased by 1.7 percentage points, joint-second with the South East of England.

Scotland has also displayed the second highest annual increase in workforce jobs, by 109,000, with only the West Midlands displayed a higher figure.

But wage growth has fallen behind inflation for a seventh month in a row.

The ONS said average weekly wages rose by 2.3 per cent in the three months to October, below inflation at 3 per cent.

Real earnings, which takes into account the cost of living, fell by 0.2 per cent.

Liz Cameron, chief executive, Scottish Chambers of Commerce, said: “For the seventh consecutive month, today’s figures show that wage growth has failed to outpace inflation, with the CPI rate of 3.1%, further biting into household disposable income.

“Vacancies are also now sitting at a record high across the UK, further emphasising the importance of continued investment into training and workforce skills, and the continued need for business to have access to a migration system that enables firms to recruit from outside of the UK when required.

“Although the Scottish employment market continues to show signs of strength, our focus is now on the upcoming Scottish Budget. It is critical that any measures put forward on Thursday recognise the existing pressures on household spending, and that policies targeted at Scottish business, at minimum, ensure a level footing with the rest of the UK.”

Andy Willox, the Federation of Small Business’s Scottish policy convenor, said: “Even though unemployment is still low, Scotland’s headline jobs indicators are now moving in the wrong direction. That’s unsettling for policymakers and devastating for those without work.

“Tomorrow’s Scottish Government budget is a key opportunity for Ministers to set out their ambitions for the country. A majority of Scottish firms are against changes to income tax, but that doesn’t mean there isn’t action which Ministers could take to kick-start growth and help firms create jobs.

“Addressing long-term problems with local roads and pushing forward with plans to deliver universal broadband would be good places to start.”