SCOTLAND’S jobs market improved in the last quarter, with employment up and unemployment down, but stagnant wage growth continued to cause concern.
The changes coincided with record numbers of EU nationals leaving the UK.
Official figures showed Scotland’s jobless total fell by three thousand to 115,000 in the three months between April and June, while those in work rose by 12,000 to 2.642m.
Scotland’s adult employment rose 0.5 points to 75.2 per cent, compared to 75.6 per cent for the UK as a whole, while Scotland’s unemployment rate was 0.1 points down at 4.2 per cent.
The UK unemployment rate fell from 4.2 to 4 per cent in the quarter, as the number of UK jobless fell by 65,000 to 1.36m, the lowest since 1976.
Unions welcomed the employment figures, but said pay growth remained “anaemic”.
Average weekly pay was £518, up barely £10 in a year.
The Office for National Statistics (ONS) said the period saw the largest fall in EU nationals
working in the UK since records began in 1997, with a drop of 86,000 to 2.28m.
SNP business minister Jamie Hepburn said: “Scotland’s economy and jobs market remains strong despite the continued challenges facing our economy as a result of Brexit uncertainty.
“On female and youth employment, we continue to outperform the UK with an employment rate of 71.6 per cent for women, higher than the UK rate of 71 per cent, and a youth employment rate of 56.2 per cent, higher than the UK rate of 53.8 per cent.”
There was no change in Scotland year-on-year employment rate, but unemployment was up 0.3 points.
Economic inactivity in Scotland was down 0.5 points on the quarter and 0.3 on the year.
Scottish Secretary David Mundell welcomed the increase in employment, but said he was "concerned" by a worsening unemployment picture over the year.
He said: “With Scotland’s economy continuing to lag behind the rest of the UK, it is important that the Scottish Government take the steps to create the right conditions to grow our economy.”
Liz Cameron, Chief Executive of Scottish Chambers of Commerce said: “Concerns remain around pay growth and productivity. The latest data has shown that the rate of pay growth is slowing, with pay remaining below the pre-downturn peak for UK workers.
“It appears the tight labour market is yet to have a commensurate impact on workers’ pay.”
TUC general secretary Frances O'Grady said: “Pay growth is anaemic at best. The government is asleep at the wheel as family budgets are squeezed."
The Institute of Directors said that “despite the increasingly heated competition to fill vacancies, wage growth continues to be a challenge", while the Resolution Foundation, said the continued job creation was “not yet translating into faster pay growth".
Andrew McRae, of the Federation of Small Businesses, added: “If we want to turn these historically good unemployment figures into sustained growth, we need to boost the country’s skills. Likely forthcoming immigration changes and rapidly advancing technology underlines the case for a smarter Scottish skills system for those already employed.”
ONS statistician Matt Hughes said: “The growth in employment is still being driven by UK nationals, with a noticeable drop over the past year in the number of workers from the so-called A8 eastern European countries in particular."
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