Unemployment in Scotland rises slightly in latest figures

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tables being cleaned at Di Maggio's outdoor restaurant area in Glasgow city centre.Image source, PA Media
Image caption,

Hospitality began to return during the latest set of figures

The number of unemployed people in Scotland increased slightly to 128,000 in the three months to July, according to new statistics.

The latest figures from the Office of National Statistics (ONS) show that the unemployment rate for people aged 16 to 64 rose by 0.1% to 4.6%.

This was higher than the the UK-wide rate of 4.1%.

The proportion of people in employment was up slightly at 74.3%.

The latest figures actually show very little change when you consider how much churn we all know there has been in the labour market.

They do not reflect how big that churn has been because the Job Retention scheme, which we also know as the furlough scheme, has kept an awful lot of people technically in employment but not working.

In the UK-wide figures out today, we see that towards the end of July there was a rise in unemployment. That was the point where the cost of the Job Retention scheme to employers went up.

The scheme should finish at the end of October. That is the point where we are going to see the figures change quite dramatically.

The expectation is that by the end of the year we could be moving up from a unemployment rate in Scotland of 4.6% to somewhere between 8% and 12%.

While this looks really grim by any comparison we have seen before there is a fundamental strength to a lot of businesses who are in trouble. If we can get through this and out the other side with these companies intact then we could start hiring again pretty fast.

But this is clearly a very tough time in the meantime.

The Scottish government's Business Minister Jamie Hepburn said the figures did not reflect the full impact of the coronavirus lockdown as the furlough scheme had offered some relief to employers and employees.

Mr Hepburn said the Scottish government's recent programme for government had been focused on protecting and renewing the country's labour market.

He added: "We continue to call on the UK government to also play its part and extend the Job Retention Scheme, particularly for sectors such as travel, tourism and hospitality that face significant long-term challenges, likely to remain when the scheme ends next month."

Scottish Secretary Alister Jack said the UK government had done "everything possible" to support people through this difficult time.

He said: "Through the furlough scheme, the UK government has supported more than 930,000 Scottish jobs, a third of the workforce, and we are taking decisive action though our ambitious Plan for Jobs."

'I've applied for 100 jobs and not got a single interview'

Image source, SOPHIE PARSONS
Image caption,

Sophie has applied for 100 jobs

Sophie Parsons, from Edinburgh, says she is feeling "demoralised" after applying for 100 jobs and not getting a single interview.

The 22-year-old was made redundant in March after working in Italy, teaching English as a foreign language.

She said about 10% of the prospective employers had replied with a courtesy email.

"They say things like 'there were better candidates' or 'we have had 1,000 people apply for this role'," Sophie says.

"It just sounds like it will only get worse."

Sophie was originally applying for jobs she really wanted but is now trying for anything she thinks she might have a chance of getting.

"I am still getting rejected," she says. "Every time I find something I might be interested in I still have a bit of hope but that hope is quickly disintegrating."

Sophie says her generation are not being treated fairly over coronavirus, both being blamed for spreading it and suffering from its economic effects.

'Give us a chance'

"We are being told not to kill our grandparents, which I think is pretty insensitive, and then we are not being employed," she says.

She says there is not enough help to get young people into employment.

"One job required eight years' experience for an entry level job," she says.

"All my friends are in the same position as me. I don't know many people who it has worked out that well for."

Sophie says that all her friends wanted to work after graduation from university.

She says: "We have got new ideas and we are passionate and we have not been jaded by 50 years of working yet so I think giving us a chance could be a really good thing."