Scots boost as jobless rate falls to record low of 3.2%

SCOTLAND’S unemployment rate fell to a record low at the start of 2022, according to the latest official figures.

The Office for National Statistics (ONS) reported just 3.2 per cent of working age Scots were jobless between January and March, a fall of 0.9 percentage points on the previous quarter. Across the UK, the unemployment rate for those aged between 16 and 64 was 3.7%.

The employment rate also rose 1.4 percentage points to 75.6% north of the Border, just below the UK rate of 75.7%.

The estimated economic inactivity rate – people not seeking work or unavailable to work – also fell in Scotland in Q1, down 0.2 points to 21.9%, while the UK rate was 21.4%.

There were 2.68 million people aged 16 to 64 in employment in Scotland in the first three months of the year, compared to 88,000 unemployed.

Separate HMRC estimates suggested there were 2.42m payrolled employees in April, up 29,000 on February.

The experimental claimant count for unemployment-related benefits was 118,700 in Scotland in April, down 6,000 over the month to 3.9% of the population, as the UK rate was 4.1%.

The figures indicate the employment market is largely back to where it was before the Covid pandemic.

However, wage increases are lagging behind inflation, with workers feeling the pinch. The ONS said regular pay (excluding bonuses) rose 4.2% in Q1, but inflation is 7% and rising.

Dr Stuart Mcintyre, of the Fraser of Allander Institute, Scotland’s leading economic think-tank, said: “Rates of employment, economic inactivity and unemployment are in line with – or slightly better than – where they were at the same point in 2019.

“The big challenge remains weak pay growth and, in turn, the cost-of-living crisis facing families across the country.

“After we take account of inflation, average pay across the UK fell 1.2% over the past year. It is only when we include bonus payments that inflationadjusted pay grew over the past year.

“Bonus payments are an increasingly common feature of the job market at the moment as businesses across the economy compete for workers by offering joining bonuses, but what matters for living standards over the longer term is growth in regular pay.”

Employment Minister Richard Lochhead said there were now 29,000 more payrolled employees in Scotland than in pre-pandemic February 2020.

He said: “While we continue to face economic challenges, with the rising cost of living, the negative effects of Brexit and the economic impacts of Russia’s illegal invasion of Ukraine, the Scottish Government remains committed to doing all we can to help our economy recover.

“By delivering on the National Strategy For Economic Transformation we will build an economy of secure, sustainable and satisfying jobs.

“In 2022/23 up to £113 million has been allocated to employability services, including £60m for No One Left Behind and additional investment in the Parental Employability Support Fund and Tackling Child Poverty.”

Scottish Secretary Alister Jack added: “It is good news that even more Scots are back in paid employment, while unemployment has fallen further.

“The economic aftershocks of Covid and Ukraine mean real pressures in the cost of living right around the world.

“The way to tackle this in the longer term is to grow our economy and create high-skilled, high-paid jobs, and we are providing a £22billion support package, including boosting the wages of the lowest paid and helping people with energy costs. Throughout these challenging times, the UK Government stands ready to do what is needed to support people right across the UK.”