WIREDGOV

The latest labour market statistics covering the three month period November-January 2012 show Scotland’s headline employment rate (for people aged 16 to 64) remains higher than the UK as a whole for the sixteenth consecutive monthly release, with the rate at 70.8 per cent in Scotland compared to 70.3 per cent in the UK.

The female employment rate in Scotland is the highest of all the UK nations – at 66.8 per cent, compared to the UK-wide figure of 65.4 per cent.

The statistics show that the headline unemployment level (among those aged 16 and over) in Scotland increased by 6,000 in the three month period November-January 2012, with the rate rising to 8.7 per cent, compared to 8.4 per cent for the UK.  Unemployment in Scotland remains lower than in most other nations and regions of UK.

The economic inactivity rate also remains lower in Scotland than in the UK as a whole – at 22.3 per cent, compared to the UK-wide figure of 23.1 per cent.

In the three month period November-January 2012 , the unemployment level among 16-24 year-olds stood at 103,000. The employment rate for 16-24 year-olds in Scotland at 52.1 per cent is higher than the UK-wide figure of 49.5 per cent.  It is important to note that the latest disaggregated figures which cover the period October-December 2011 suggest that around 35 per cent of young unemployed people in Scotland are also in full-time education, compared to a figure of 30 per cent UK-wide.

Commenting on the statistics, Cabinet Secretary for Finance, Employment and Sustainable Growth John Swinney said they demonstrate why the Chancellor needs to take urgent action to create jobs in next week’s UK Budget.

Mr Swinney said:

“It is clear from these figures that we need sustained action in next week’s UK Budget to support economic recovery.

“Last month, the Scottish Government delivered a budget for growth – which boosts public sector capital investment, takes action to tackle unemployment and in particular youth unemployment, and enhances economic security.

“The Scottish Government is using every lever currently available to us to secure new investment and create and safeguard jobs, in the face of severe cuts from Westminster.

“The Chancellor needs to change course in next week’s Budget, and deliver a ‘Plan MacB’ approach for the economy.

“First, Scotland has a range of shovel ready projects – worth more than £300 million – which could be initiated during the coming financial year if additional resources were made available, so the Budget must set out additional capital investment to provide a stimulus to the economy and boost confidence.

“Second, tackling youth unemployment is a top priority and the tax system can play its part.  The Chancellor should deliver a National Insurance holiday relating to the recruitment of young people – a relatively simple measure that could significantly enhance employment opportunities for young people, and could also be extended to cover recruitment by small and medium sized businesses.

“Third, the Project Merlin figures released last month showed that the big five banks failed to meet their SME lending targets, but these overall failed targets have failed to an enormous degree in Scotland, which received only 4.8 per cent of gross lending.  This needs to be addressed as a matter of urgency in next week’s UK Budget, given the UK Government’s powers to act.

“The Scottish Government will continue to do what we can to provide the environment to unlock new private investment – we have set up the Scottish Investment Bank which is open and investing in Scottish companies.

“We are investing an additional £30 million to support youth employment, on top of 2 billion pounds already invested in opportunities for young people.  With a record 25,000 Modern Apprenticeships this year and in each year of this Parliament, and the 'Opportunities for All' programme to guarantee a training or learning opportunity for every 16-19 year-old, the Scottish Government has outlined our commitment to ensuring that our young people have the life chances they deserve – and we are doing more with our dedicated Minister for Youth Employment.

“Scotland’s full potential to secure new investment and jobs can only be realised if Scotland has access to all the levers of economic growth with independence.  In the meantime, we urge the Westminster government to ensure their Budget comes forward with plans to increase capital investment, support youth employment, and boost access to finance for Scottish businesses.”

Related information

Office for National Statistics Regional Labour Market Statistics