Scottish jobless figures up 5000 in three months

Overall, around 118,000 people were unemployed, against 2,664,000 in work.

Scottish employment fell by 8000 on the previous quarter, with the rate now 74.8 per cent.

In the UK as a whole, employment rose 168,000 (0.3 per cent) to 32.2m, the highest figure since records began in 1971, a rate of 75.3 per.

However UK unemployment also rose 24,000 to 1.45m.

Excluding bonuses, pay in Scotland fell by 0.2 per cent when adjusted for inflation.

SNP employability minister Jamie Hepburn acknowledged there was a “slight decrease” in employment, but said the employment rate had increased over the past year and long term.

He said: “Once more, we continue to outperform the UK on employment and unemployment rates for young people and women, 71.5 per cent of women and 58.8 per cent of young people are in employment in Scotland compared to 70.9 per cent of women and 54.5 per cent of young people in the UK."

“Our support for young people includes a commitment to train at least 28,000 new apprentices next year, including opportunities at degree level, and 5,000 Foundation Apprenticeships in the senior phase of Curriculum for Excellence, by 2020.”

He also said Brexit remained the single biggest concern to Scottish businesses.

Tory Scottish Secretary David Mundell it was encouraging that the unemployment rate had fallen over the year, but added: "However, the most recent quarterly snapshot shows an increase of people in Scotland out of work and I urge the Scottish Government to use its considerable powers to strengthen the economy and help create the right conditions for sustained long term employment.”

Labour MSP Jackie Baillie said: “These figures underline the sense of complacency from the SNP government in Edinburgh when it comes to the economy.

“Ministers continue to claim that the fundamentals of our economy are strong.

“Instead we are seeing rising unemployment and for too many people who are in work, that work is insecure – temporary, zero hours’ contracts, paying less than the living wage.”

Scottish LibDem economy spokesperson Councillor Carolyn Caddick aded: "These figures show a trembling economic picture. Thousands of jobs have been lost and Brexit threatens tens of thousands of jobs.

"The overall measures for Scotland are now worse than for the UK as a whole. Scottish ministers have promised to drive forward our local economies but these figures show performance is stuck and stagnant." 

Dr Stuart McIntyre of the Fraser of Allander Institute said: “While headline economic growth in Scotland continues to disappoint, with annual GDP growth of just 0.6 per cent on the latest data, Scotland’s labour market continues to hold up relatively well with nearly 35,000 more people in employment in the past year than in the year before.

“For those in work, earnings continue to grow at a slower pace than inflation. This is putting further pressure on household finances, with associated implications for consumer expenditure and in turn GDP growth.”

The Scottish Chambers of Commerce said vacancies were at “historically high levels”.

Chief executive Liz Cameron said: “Despite poor wage growth in real terms, there has been an increase in the growth rate in comparison to the last quarter.

“In order to ensure sustained real terms wage growth, there must be a renewed focus on increasing productivity.

“The private sector will lead the way, and we also expect our partners in government to do their part to remove barriers to investment and provide long-term certainty.”

Andy Willox of the Federation of Small Businesses in Scotland said: “These worrying figures show that Scotland’s headline jobs metrics are both moving in the wrong direction.

“Getting local economies growing to reverse this trend must be the country’s decision-makers’ top priority. The Scottish Government could do worse than using our public sector’s enormous spending power to kick start local economies.”