Scotland trailing UK on job growth

SCOTLAND is falling behind the rest of the UK when it comes to job creation, figures show.

The number of those deemed ‘economically inactive’ is soaring despite a drop in unemployment, according to the Office for National Statistics (ONS).

Dean Lockhart, Scottish Conservative economy spokesman, last night warned that ‘growth is increasingly slow compared to the rest of the UK’.

He added: ‘Much of the fall in joblessness is due to people being removed from the job market.

‘The repeated uncertainty caused by the threat of another independence referendum isn’t helping, nor does making Scotland the highest-taxed part of the country. The Scottish Government needs to ditch its constitutional fantasies and start focusing on making Scotland open for business.’

Scotland’s jobless total fell between June and August to its lowest level since the 2008 financial crash.

The ONS said 127,000 were out of work in that period, 44,000 fewer than the same time last year.

Across the UK, unemployment rose by 10,000 to 1.66million but more people were seeking work. The number in work remained at a record high of 31.8million.

However, the report shows that the fall in Scotland’s jobless total is largely due to people becoming economically inactive, including those studying, looking after family or long-term sick, and so no longer included in the nation’s labour market statistics.

Since 2007, 162,000 have become inactive and the Scottish rate is 37.6 per cent, compared with 36.2 per cent for the rest of Britain.

Since the SNP came to power, job growth has been the lowest in the UK, with a rise of only 2.6 per cent. That is an eighth of the increase in London and half that of Northern Ireland, Wales and most of England.

While Scotland had a better unemployment rate than the rest of the UK, the employment rate is lagging, at 74 per cent compared with 74.5 per cent across Britain.

There was also a slight increase in the number of Scots claiming Jobseeker’s Allowance, which rose by 600 last month to 55,000, although this is lower than September 2015, having fallen by 15,500.

Scottish Labour economy spokesman Jackie Baillie said: ‘The employment data paints a mixed picture. It is encouraging to see a large fall in unemployment but the rise in economic inactivity is concerning.

‘The last thing Scotland needs is the further economic uncertainty that a second independence referendum would cause.’

Scottish Chambers of Commerce chief executive Liz Cameron said: ‘The large fall in unemployment is good news but overall levels of employment in Scotland have fallen and economic inactivity is rising, as has the number of those claiming benefits.

‘Challenges remain, including the need to grow Scotland’s productivity. We will be looking for a clear recognition and response to this when the Scottish Government sets out its budget plans.’

Scottish Secretary David Mundell said: ‘It is worrying employment is down and more people are dropping out of the labour market in Scotland when the rest of the UK is seeing employment up.’

‘Need to grow productivity’