The latest official figures from the Office for National Statistics (ONS) show that the number of people out of work in Scotland fell by 13,000 to 206,000 between October and December last year. However, they also show that the number of people in jobs also dropped by 11,000 over the same period. It means that the unemployment rate here was 7.7%, just below the average of 7.8% for the UK as a whole.
Perhaps the most puzzling statistic in the figures was the news that, compared with the rest of the UK, there had been a rise in what the statisticians call “economic inactivity” – in other words, people who, when questioned for the regular jobs survey, say they’re neither in work nor looking for work. In Scotland, that number rose by 27,000, while it fell substantially.
Many politicians from both Westminster and Holyrood have welcomed the news. Scottish Secretary Michael Moore for instance insisted that the government continued “…to work hard to reduce unemployment by laying the foundations for a stronger, more balanced economy.”
Meanwhile in Edinburgh, the Scottish Finance Secretary John Swinney pointed out that it was the third set of monthly unemployment figures in a row to show a fall. “But we must not be complacent,” he stressed. “Too many people are still looking for work, and the Scottish government is taking action to address this by maintaining the most competitive business environment anywhere in the UK and investing in our infrastructure.”
By contrast, Scottish Labour’s finance spokesman Ken Macintosh argued the fall in unemployment disguised “the very serious and far more worrying upward trend” in those withdrawing from the labour market in Scotland. Employment is increasing across the UK as a whole, but here in Scotland the number of people in work is falling.”
This view was echoed by Grahame Smith of the Scottish Trades Union Congress who described the figures as making “grim reading for Scotland. Although the headline unemployment rate has fallen quarter on quarter the reality is that it is that people are leaving the labour force rather than finding jobs. Employment has now fallen by 40,000 over the last six months and 55,000 more people have become economically inactive. This situation simply cannot be spun into good news.”
However, at the Scottish Chambers of Commerce, Chief executive Liz Cameron welcomed the news, saying that it was good that “unemployment in Scotland has continued its downward trend, and it is particularly important to note that youth employment fell by 28,000 over the course of last year.
“This has undoubtedly been assisted by the focus on youth employment that has been evident on the part of the Scottish government in 2012, and Chambers of Commerce across Scotland have also sprung into action to help tackle high levels of youth unemployment.”
This was a theme also mentioned by the Scottish Building Federation which called for a renewed focus on supporting apprenticeships in the construction industry to help achieve a continuing fall in youth unemployment. Its Executive Director, Michael Levack, said it was “welcome news that the number of 16 to 24-year-olds who are unemployed in Scotland is reported to have fallen over the past year. We strongly support the Scottish Government’s focus on supporting youth employment,” he continued, “through its commitment to fund 25,000 Modern Apprenticeships per year. However, we believe there needs to be a greater recognition of the unrivalled opportunities for high quality skills development available through the construction industry’s well-established apprenticeship framework, underpinned by the annual training levy, which is unique to the construction sector.”