Scots seeking work falls by 4,000 as unemployment rate dips

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The number of Scots seeking work between November and January fell by an estimated 4,000 to 114,000, official figures show.

The drop took the official unemployment rate down from 4.2% to 4.1%, while the UK rate also fell a notch to 5%.

The Office for National Statistics (ONS) figures, external also show that across the UK the number of workers on company payrolls climbed by 200,000.

Scotland's employment rate estimate fell over the quarter to 74.3%.

The official figures count people on furlough as being in work.

Scotland's Business Minister Jamie Hepburn said the figures did not reflect the full impact of coronavirus on the jobs market.

He said it was "crucial" that the UK government kept the furlough scheme in place for as long as it was needed.

Mr Hepburn said: "We will continue to take every step within our power to create a stronger, more resilient, sustainable economy for Scotland."

Scottish Secretary Alister Jack said the figures showed "the scale of the challenge we face to rebuild our economy".

He added: "We need to focus on creating and protecting jobs.

"Over the past year, the UK government has taken decisive action to support jobs and livelihoods across the whole of the UK."

This year's lockdown has returned millions of people to furlough, and while workers retain their jobs, many face a drop in income from reduced hours.

So these numbers show only part of the employment picture.

They indicate the number of Scots in work was down 16,000 at the turn of the year, as more people left the labour force and were no longer available for work.

The number of Scots claiming benefits linked to unemployment last month was up by nearly 4,000. It has risen 89% in the past year, to 212,000.

Meanwhile, an estimate of the number of payrolled workers showed an increase in January, but it was down 65,000 since the start of last year.

Across the UK, those most likely to have lost their jobs were young and in the hospitality sector.