Scotland’s employment rate rose to a joint record high in the last quarter.
The employment rate for people aged 16 to 64 was 75.9% between August and October, up 0.7% on the previous three-month period, according to the Office for National Statistics (ONS).
This was the joint highest since the labour force survey series began in 1992, with the employment rate last reaching 75.9% in February to April 2019.
The employment rate for women in Scotland aged 16 to 64 was 75.6% in the latest quarter – also the highest since the series began.
However unemployment in Scotland increased slightly last quarter.
Between August and October, the unemployment rate among those aged 16 and over was 3.3%, which was 0.2% up on the previous three months.
This was below the UK-wide unemployment rate of 3.7%, which was 0.1% up on the previous quarter.
In Scotland there were 2.725 million people aged 16 and over in employment between August and October, while 93,000 in that age group were unemployed.
Employment Minister Richard Lochhead, said: “Although the latest GDP data showed a contraction in the economy during the third quarter of 2022, the employment rate for August to October 2022 increased to a joint record high.
“This is against the backdrop of the serious challenges which businesses are facing from the cost crisis, high inflation, the continued impact of Brexit and the economic consequences of Russia’s illegal invasion of Ukraine.
“Priorities for Thursday’s Scottish Budget 2023-24 include helping families and public services through the cost-of-living crisis and transforming the economy to deliver net zero.”
Ann Frances Cooney, employment law partner at DWF, commented: “As we look ahead to 2023 it is likely that the turbulent economy will present further challenges to the labour market in Scotland.
“With some employers having to make difficult decisions, it is expected that some job losses are inevitable.“
She also noted that the number of days lost due to strike action hit a 10-year peak in October, according to the ONS.
“Pay is the main issue being disputed as people need more money to live due to the cost of living crisis, which means employers are in the challenging position of having to balance demands for higher pay with rising business costs.
“The onus will be on business leaders to help foster a supportive and positive workplace culture with clear communication on how the organisation will weather the storm.“
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