Scotland has reported a new record-low unemployment rate - and the country's employment minister is warning that businesses could face recruitment challenges unless the UK government reforms immigration policy.
Data from the Office for National Statistics showed 3.1% of people in Scotland aged 16 and over were out of work from November 2022 to January this year - some 88,000 people. That was down 0.2% on the previous three months, and down 0.7% on the year before.
The lowest unemployment rate across the UK for this quarter was in the South West of England at 2.3% but Scotland, the North East (4.1%) and Yorkshire and The Humber (3.2%) all showed joint record lows.
Scotland’s employment rate for those aged 16 to 64 years is at 76.5%- meaning about 2,633,000 people were in work between November last year and January.
This is a slight increase of 0.5% on the previous quarter and 2% more than in the same period last year - but marks a small decrease on the final three months of 2022 when the employment rate stood at a record 76.6%.
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Scotland’s employment minister Richard Lochhead said: “The low unemployment rate across Scotland and close to record high employment rates for all 16 to 64-year-olds are welcome but certain industries still face recruitment challenges.
“The Scottish Government is delivering on the National Strategy for Economic Transformation to create a fairer, wealthier and greener country, while ensuring everyone can thrive in a diverse and inclusive workforce.
“The UK Government holds key powers over parts of employment law and has refused to devolve powers on migration, which could boost Scotland’s workforce and tackle the recruitment challenges, many of which have been caused by the end of free movement and the hard Brexit imposed on Scotland by the UK Government.
“I have repeatedly called on UK ministers to establish a joint taskforce on labour market shortages. An urgent rethink of UK Government immigration policy is needed so there is increased access to the international labour and skills that Scotland needs for our economy and communities to flourish.”
Ann Frances Cooney, partner leading the Scottish employment law practice at DWF, said: "Yet again Scotland's labour market has remained robust. The figures reported reflect a period of increased economic activity with the run up to Christmas.
"As we look ahead we can expect the labour market to be impacted to some extent by the perhaps inevitable restructuring by a number of employers. With the cost of living crisis continuing to takes its toll the employment rate may be challenged in the short to medium term.
"With industrial action hitting a ten year high, we may see more industrial unrest in Scotland as prices continue to soar and employers struggle to meet the demand for increased pay. Employee engagement, with a focus on core talent is crucial."
