Slight fall in unemployment in Scotland

There were 2.55 million people in employment in Scotland from November 2021 to January 2022

Unemployment in Scotland dropped slightly in the last quarter, according to latest figures.

Office for National Statistics (ONS) data showed the unemployment rate for people aged over 16, between November 2021 and January 2022, was 3.8%, down 0.3% on the previous quarter.

There were 2.55 million people aged 16-64 in employment in Scotland during this period.

In that age group, 104,000 people were unemployed.

The employment rate for those aged 16 to 64 was 74.5%, a drop of 0.1% on the three-month period before that.

This was below the UK-wide employment rate of 75.6% for that age group while the unemployment rate for those aged 16 and over was 3.9%.

Cost of living

Stuart McIntyre, head of research at the University of Strathclyde's Fraser of Allander Institute, said the figures showed the economy and labour market was recovering from the worst of the pandemic.

"We are seeing employment continue to grow relative to where we were, unemployment fall back a bit, but the broader and bigger picture is wage growth is failing to keep pace with the rising cost of living," he said.

UK-wide data is showing a record number of vacancies, meaning employers are facing pressure to increase wages and benefits to prospective employees, he added.

But it also reveals that wage growth is failing to keep up with the rising cost of living.

Dr McIntyre added: "Inflation is showing no sign of abating, we're anticipating significant increases in energy costs in particular but other costs of living continue to increase.

"So it's likely that existing employees are going to be bargaining for bigger pay rises this year than they have for a number of years and employees are going to be looking at job offers and vacancies outside their organisation."

Employment Minister Richard Lochhead said the figures reflected the emergence of the Omicron Covid variant at the end of last year, when it was necessary to implement strict public health measures.

He said: "While we continue to face economic challenges, especially with the rising cost of living and the potential economic impacts of Russia's illegal invasion of Ukraine, the Scottish government remains committed to doing all we can to help our economy recover.

"The new National Strategy for Economic Transformation will help us build an economy of secure, sustainable and satisfying jobs.

"We are also investing an additional £68.3m in employability and training to help businesses address skills shortages and help build a fairer, more prosperous economy for everyone."

'Encouraging signs'

Scottish Secretary Alister Jack said: "There are some encouraging signs in today's employment figures, and while we should not be complacent, our economy is proving resilient.

"The UK government is helping people right across the country get into work and progress. This is part of our vision to level up all parts of the UK, driving economic growth and creating opportunities for everyone."