Two separate reports add to the growing optimism about the state of the Scottish economy. The first, the monthly update from the Office for National Statistics (ONS), shows not just that unemployment here is continuing to fall but also that the Scottish rate is now well below the average for the UK as a whole.
In the months between February and April, the number of people out of work fell by 6,000 to 194,000. This puts the unemployment rate in Scotland at just over 7%, below the UK average of 7.8%. Youth unemployment was over 6% lower than the same period last year and, although it remains high over 15%, that is still lower than the 19.5% for the UK. As encouraging, the size of the workforce rose by 47,000 to reach 2,530,000.
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Alex Salmond MSP
First Minister
The First Minister, Alex Salmond, welcomed the latest figures. He was particularly encouraged by the fall in youth unemployment and announced “further measures to support youth employment, with an £88m investment into work and supporting small business growth. This investment will help create 10,000 new youth jobs. This money shows our commitment to support young people in Scotland, and to work with local government and other social partners in a series of initiatives to provide employers with the help they need to create youth jobs.”
The Scottish Secretary, Michael Moore, pointed out that “the rise in employment together with fewer people claiming Jobseekers Allowance in Scotland is very welcome, not least for those who are moving from unemployment into jobs.” He added: “This shows the decisions we are taking to tackle the deficit and build a stronger and fairer economy are working.”
The second report comes from the Scottish Retail Consortium. This shows that retail sales grew at a “steady” pace last month but didn’t match the UK as a whole. Scottish sales grew by 0.8% in May; but that contrasts with other parts of the country which saw growth of 3.4% in the month. There was strong demand for electrical items like large white goods and small household appliances. However, the bad weather in May, the coldest since 1996, may explain the demand for winter medicines and the poor sales of summer clothes.
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Fiona Moriarty
Director, Scottish Retail Consortium
According to SRC Director Fiona Moriarty, the result chimed “…with rising levels of consumer confidence in Scotland. Customers remain price-conscious, but the signs are that they entered May a little more willing to spend, especially on value ranges.”
The survey is sponsored by KPMG’s UK retail division. The head of the unit, David McCorquodale, Admitted that “the cold truth is Scottish sales are trailing behind the UK’s. Yes spending is up, but only just, and it remains an uphill struggle for retailers who are fighting over every pound that enters the tills. This battle for their share of consumer wallets will remain fierce and retailers must keep a watchful eye on their own margins as they try every form of promotional activity to secure sales.”
