Unemployment rate in Scotland drops to record low

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Scotland's unemployment rate has dropped to a joint-record low, though estimated wage growth is lagging behind the overall UK figure.

The Office for National Statistics (ONS) found the unemployment rate has fallen by 1.1 percentage points in the past year to 3.2% – the joint lowest figure on record.

Estimated wage growth in Scotland is 5.3%, compared with 6.6% for the UK.

The Scottish government said the economy was showing "resilience".

The ONS data reveals there were almost 90,000 people seeking work between April and July in Scotland, with the country's unemployment rate lower than the 3.8% for the UK as a whole.

Scotland's rate has dropped this low on three occasions – between February and April and January and March this year, as well as between January and March 2019.

The unemployment figure was unchanged from the previous quarter, increasing by just 2,000, but decreased by 1.1 percentage points when compared with the same quarter last year.

Similarly, employment increased by 1.2 percentage points during the same period, with 73,000 more people in work.

The ONS reported 75.4% employment between April and June, with around 2.7 million people working.

This was a drop of 0.1 percentage points, equivalent to 25,000 people.

'Resilience'

Despite the relatively positive news for Scotland, estimated wage growth has fallen behind that the UK as a whole.

Median monthly income for payrolled employees in July was £2,118, an increase of 5.3% on the same period in the previous year, but behind the 6.6% rise seen in the UK.

The ONS said estimated wages rose in Scotland by 12.8% between February 2020 – the last month before the start of the pandemic – and the most recent month, compared with 13.4% in the UK as a whole.

Employment Minister Richard Lochhead said: "The Scottish economy and labour market are continuing to show resilience, although the employment rate has decreased slightly over the quarter, the unemployment rate was a joint record low in the Scottish series.

"Additionally, the employment rate for women in Scotland was the highest since the labour force survey estimates were first published in 1992.

"This is despite the serious challenges Scotland is facing as we recover from the pandemic, with the cost-of-living crisis, the continued impact of Brexit and the economic consequences of Russia's illegal invasion of Ukraine all impacting on the economy."

'Positive signs'

The UK government also welcomed the figures.

Scottish Secretary Alister Jack said they showed "positive signs" for Scotland.

He added: "The best way to continue growing our economy in the long-term is to get even more people into well-paid, highly-skilled jobs as we know that people are better off in work than on benefits.

"However, we also know people are worried right now about the rising cost of living and that's why we're providing the most vulnerable households with an extra £1,200 of direct support through our £37bn package of support, while continuing to help all households with their bills.

"Alongside this, the UK government continues to drive forward investment in communities to create and support jobs, helping level up opportunity from our biggest towns and cities to our most remote villages."