Scotland’s employment rate has reached a new high at a time workers are seeing their spending power slashed by rampant inflation and low wage growth.
Over the period October to December last year, 2,742,000 people aged 16 to 64 were in work – up by 37,000 on the previous quarter.
That meant the employment rate for the last three months of last year rose to 76.6 per cent.
The total is up from the 76.1 per cent that was recorded for September to November 2022, which had been the highest ever recorded since the labour force survey series began in 1992.
Roz Foyer, general secretary of the STUC, said wage growth had been weakest in the public sector and called on the Scottish Government to settle outstanding disputes with unions.
She said: "The real story of Scotland’s latest labour market figures is falling real wages. Even before accounting for inflation, take-home PAYE earnings are down from £2,238 in November 2022 to £2,206 in January 2023. When inflation is accounted for real wages are falling significantly.
"We know that wage growth has been weakest in the public sector. With a number of disputes outstanding, it would be inexcusable for the Scottish Government to continue to obfuscate whilst workers suffer. We need real, sustained investment in our public services, prioritising and rewarding the workers who keep them running."
Employment minister Richard Lochhead said the record proportion of Scots in work and high employment rates for women are "particularly welcome". But he warned there are still some industries that face "recruitment challenges" calling for action from the UK Government to help tackle these.
Lochhead said: "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. The record high employment rate for all 16 to 64-year-olds and the joint record high employment rates for women are particularly welcome."
He added that "despite the high employment rate, certain sectors still face recruitment challenges". Lochhead 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."
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