Number of Scots in work falling as 7,000 lose their job before Christmas

THE number of people holding down a job in Scotland fell at the end of last year, according to the latest official figures.

At the end of December 2020, there were 2,657,000 people in work – 7,000 fewer than three months earlier and 114,000 less than a year ago.

Unemployment fell by 3,000 in the quarter, to 123,000 – 26,000 higher than the previous year.

The Office for National Statistics (ONS) said the employment rate among those aged 16 to 64 was 73.7 per cent between October and December last year, 0.3 per cent down on the previous quarter.

The unemployment rate estimate in that age group also fell slightly over the quarter to 4.5 per cent, a drop of 0.1 per cent on the previous quarter.

Dr Stuart McIntyre, head of research at the Fraser of Allander Institute at the University of Strathclyde, said: ‘Today’s labour market data reinforces three key points about the Scottish economy through 2021. First, and most immediately, with over 280,000 jobs still furloughed in Scotland at the end of 2020 the manner and pace at which the furlough scheme is wound down is going to be key.

‘Second, the timing and pace of economic recovery is tightly bound to the easing of public health restrictions. Third, some parts of Scotland have faced much greater exposure to the economic fallout from the pandemic.

‘This cannot be forgotten when we begin the necessary work of rebuilding our economy.’

Business Minister Jamie Hepburn said: ‘The job retention scheme continues to play an important role in supporting employers and employees and, combined with the huge economic uncertainty caused by Brexit, this remains an extremely uncertain time for the economy and jobs.’