Scotland's workforce grows by 89,000 in a year

The number of people in work in Scotland has grown by almost 89,000, according to new figures.

Official statistics also reveal a sharp decline in the number of "economically inactive" people between October and December 2022.

They suggest they are deciding to join the workforce, with the employment rate hitting a record high of 76.6%.

The Office for National Statistics (ONS) also found pay is rising at the fastest rate in more than 20 years.

But it is still failing to keep up with rising prices.

• Wages rise but fail to keep up with inflation

The ONS Labour force survey reveals that 2.7million people aged over 16 were in employment in Scotland towards the end of 2022.

That is 89,000 more than for the same period in 2021.

A large number of those appear to have been previously classed as "economically inactive" by the ONS.

They include those with long term illnesses, as well as students and people looking after family. It rose significantly following the pandemic.

But rising prices, and the ease of getting a job while vacancy rates remain high, has mean the highest recorded level of people shifting into work or looking into work.

Since the last three months of 2021, 58,000 of these people have made themselves available for work.

At the end of last year 717,000 (20.8% of people aged 16-64) were economically inactive.

There has also been a drop in the number of people who are unemployed.

About 93,000 (3.3%) of over 16s were unemployed between October and December 2022, about 19,000 fewer than in the same period in 2021.

'Turbulent economic circumstances'

Employment Minister Richard Lochhead said the high employment rate for 16-64 year olds and for women were welcome.

"The employment rate in Scotland remains high despite the turbulent economic circumstances including the continued impact of Brexit, high inflation and the cost-of-living crisis," he said.

Mr Lochhead added certain sectors still faced recruitment challenges.

He said: "The Scottish government is doing all it can to work with businesses and organisations to alleviate them.

"The UK government holds key powers over migration, visas and key parts of employment law and I repeat my calls for UK ministers to establish a joint taskforce on labour market shortages."

Scottish Secretary Alister Jack said the statistics show Scotland's labour market was resilient "despite economic headwinds".

"We cannot be complacent and the prime minister has been clear on the UK government's priorities to halve inflation, grow the economy and reduce debt," he said.

"That will ease the cost of living, give people financial security, and achieve sustainable long term growth.

"To deliver more high-quality jobs and level up across Scotland, the UK government is investing almost £2.3bn in partnership with regional organisations, and has awarded Freeport status to the Inverness and Cromarty Firth and Firth of Forth, which will encourage regeneration to benefit the whole of Scotland."

The renewables industry is one sector which is actively recruiting.

At Scottish Power, David Bowie trains young people to climb pylons, having worked previously at Cruachan power station in Argyll and Bute.

After 40 years with the firm, Mr Bowie said the rate of change in the sector is getting faster.

"We are all contributing to very real change, change that is visible throughout the country as we invest heavily in new forms of clean generation for the future," he said.