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Insider UK
Lucinda Cameron & Peter A Walker

Unemployment in Scotland rises slightly

Unemployment in Scotland increased slightly last quarter, according to latest Office for National Statistics figures.

Between July and September this year, the unemployment rate among those aged 16 years and over was 3.5%, which was 0.3% up on the previous quarter.

Across the UK, the unemployment rate rose to 3.6% in the three months to September, up from 3.5% in the previous three months.

In Scotland, the employment rate for those aged 16 to 64 years was 75.3% between July and September – 0.1% down on the previous quarter.

Meanwhile, the Scottish Government said the employment rate for women in Scotland aged 16 to 64 was the highest since the Labour Force Survey series began in 1992, at 75.2%.

Employment Minister Richard Lochhead said: “The Scottish labour market continues to show resilience in the face of ongoing challenges to the economy with marginal changes over the quarter to the employment, unemployment and inactivity rates.

“The ongoing cost-of-living crisis, along with the damaging effects of the UK Government’s recent mini-budget and the continuing adverse consequences of the UK Government’s Brexit policies, are impacting on Scotland’s businesses and workforce.

“Ahead of the Chancellor’s statement, we are engaging with the UK Government to urge the use of its reserved powers and financial resources to help people and businesses through this cost-of-living crisis, to rule out a return to austerity, and through its devolved funding arrangements to better equip the Scottish Government to deal with these exceptional economic challenges.

“The Scottish Government is doing all it can to alleviate the labour shortages reported by Scottish businesses.”

UK Minister for Employment Guy Opperman said: “The UK labour market has remained resilient in the face of global challenges, with a low unemployment rate and a record number of people on payrolls.

“Whilst these figures are encouraging, we recognise that families are facing rising prices and employers need support to fill vacancies with a reliable workforce.

“Our focus is on making sure people looking for work, and those already in work, have the opportunity to boost their skills and keep more of what they earn, helped by our extensive network of Jobcentres.”

University of Strathclyde professor Stuart McIntyre commented: “Headline data on the Scottish labour market continue to show high levels of employment and low levels of unemployment – reflecting the relatively tight labour market in the three months to September.

“However, the outlook for the Scottish economy over the coming year is much less positive.

“It is clear that the Scottish economy is heading into an exceptionally challenging period, with widespread expectations of a decline in employment and a substantial rise in unemployment over the next year.

“One rising issue of concern in the Scottish labour market is the growing rate of economic inactivity amongst men, now at 21.1%, its highest rate since the current data series began in 1992.

“There are a number of reasons, both good and bad, for economic inactivity, but a particularly worrying one at the moment is the rise in those who are economically inactive because of illness.“

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