Is jobless fall down to people giving up?

‘Challenge facing the economy’

SCOTLAND’S unemployment rate has fallen to a 25-year low, revealed in new figures released yesterday.

In the second quarter of this year the jobless rate was 3.8 per cent compared to the corresponding figure of 5.4 per cent in 2016.

But as the number of those claiming to be out of work fell by 46,500 to 104,000, the number classed as economically inactive surged by nearly 65,000, – fuelling fears that many are giving up looking for work.

The number in work increased by 25,000 in the three months from March to May, but fell by more than 6,000 compared to last year, according to the Office for National Statistics.

Economy Secretary Keith Brown claimed yesterday that the figures show the labour market in Scotland ‘remains resilient and robust’, adding: ‘Our employment rate is also rising, which is good news.’

But experts warned the drop in jobless could be down to the rise in those becoming economically inactive rather than those finding themselves a job.

Those considered economically inactive include people not looking for employment, such as students, carers, retired people and the disabled.

Scottish Chambers of Commerce chief executive Liz Cameron said: ‘These numbers highlight the continuing challenge facing the Scottish economy when businesses are seeking staff with the right skills to help them to succeed and grow.’

Scottish Conservative economy spokesman Dean Lockhart said: ‘We cannot escape the fact that much of this fall in unemployment can be attributed to a rise in those who are now economically inactive. Thousands more are in that position now.’