THE strength of Scotland's economic recovery has been thrown into question by new figures suggesting the jobs market is struggling, despite official statistics showing record numbers of people in work.

 

A survey by employment specialists Manpower found Scotland was the only part of the UK where more firms are planning to lay off workers than hire new staff.

In a second blow to the Scottish and UK governments, the STUC warned of a series of "worrying developments" in the labour market, despite encouraging headline jobs figures in recent months.

Union leaders also highlighted an "unprecedented" collapse in wages since 2009.

Last month the Scottish and UK governments both claimed credit when the number of Scots in work hit a record 2,625,000.

At the same time, unemployment fell 15,000 to 149,000 over the last three months of 2014, the lowest since 2009.

But according to the latest Manpower employment outlook survey, which is used by the Bank of England and UK Government, slightly more employers plan to shed than recruit staff over the next three months.

Scotland, with a -1 per cent "employment outlook rating," was the only part of the UK where job prospects were expected to worsen.

The UK-wide rating was +6 per cent.

Scotland's rating has fallen from +8 per cent six months ago as the price of oil has plummeted, Amanda White, Manpower UK operations manager said.

She added: "The energy industry provides employment for around 200,000 people across Scotland and the recent fall in oil price has hit Scottish jobs hard, with the economy of its third largest city, Aberdeen, reliant on the sector.

"As well as an overall fall in the number of jobs available, we have also seen salaries impacted.

"For example, pay in Aberdeen has dropped, after a period of higher salaries driven by a booming resources sector."

In its submission ahead of George Osborne's pre-election Budget on March 18, the STUC said strong headline employment figures masked a much weaker picture.

Its analysis said the number of employees was still below pre-recession levels, as the number of self employed people - believed to be working fewer hours and earning less - has soared by 14 per cent.

The number of full-time employees was 60,000 down on pre-20008 levels, the STUC found, as part-time working increased.

Its report also raised concerns about the high number of unemployed young people, which remains above the pre-recession level.

The STUC said the collapse in wages since 2009 was "without precedent" in the last 150 years.

The average full time worker is £1670 per year worse off than they would have been had pay kept pace with inflation.

Women have been harder hit, the STUC said, with full-time female staff losing £2048 and part-time employees £693 per year, or 11.3 per cent.

Grahame Smith, the General Secretary of the STUC said: "As the economy emerges from years of recession and stagnation, the anticipated recovery in living standards has failed to materialise.

"The prolonged collapse in real wages is without precedent during the last 150 years and benefit cuts have meant society's most vulnerable have suffered most from the Coalition's misguided economic and social policies."

He said directors and senior staff in the financial sector had seen pay rise 23 per cent while supermarket check-out workers' wages slumped by 12 per cent.

The STUC analysis follows figures from the Office for National Statistics last month which showed eight in 10 jobs created in Scotland since the Conservative-Liberal Democrat Government came to power are in low pay industries.

The SNP and Labour have both called for Budget tax breaks for the oil industry in a bid to safeguard investment and jobs.

A Scottish Government spokeswoman said: "Scotland has the highest employment and economic activity rates and lowest unemployment rate of the four nations of the UK.

"The employment level in Scotland has reached record highs during 2014, with the employment level increasing by 187,000 since the recession.

"These labour market statistics demonstrate the success of the work we are doing to improve employment opportunities for all in Scotland."

A UK Government spokesman said: "The UK Government's long-term economic plan is working, managing debt and seeing the fastest growing economy in the G7.

"Employment in Scotland is up 187,000 since 2010, unemployment is down 70,000 and female employment up 107,000.