Jobs increase across sectors shows diversification away from energy

EY says total employment in Aberdeen increased by 0.2% last year, equivalent to 300 jobs.

The local economy grew by 0.7%, slightly trailing Scotland (0.9%) and also behind the UK (1.2%), the report says.

According to EY, the unemployment rate in Aberdeen fell to 3.8% in the 12 months to September 2019 – a decline of 3.1 percentage points from the equivalent period in 2018.

A more up-to-date but narrower claimant count measure shows a 0.8 percentage point rise in the year to December last year, the report adds.

Employment in Aberdeen will contract by 0.2% this year and “remain fairly steady” over the period to 2024 as the local economy grows by 0.9% per year, slower than both the Scottish (1.3%) and UK (1.6%) averages, the report says.

Derek Leith, managing partner of EY’s Granite City office, said: “Aberdeen’s economic growth is forecast to be slightly lower than the rest of Scotland as the city continues to rebase its economy following the downturn in the oil industry. It is encouraging to see employment growth across a wide range of sectors. This is a positive indication of the ongoing, and necessary, diversification of the local economy.”

The report says total employment in Inverness rose by 1.1% in 2019, equivalent to 500 jobs as the local economy grew by 0.9%. According to EY, the unemployment rate in Inverness fell to 2.1% in the 12 months to September 2019 – a decline of 1.8 percentage points from the equivalent period in 2018.

The more up-to-date, though narrower, claimant count measure showed a 0.1 percentage point rise in the year to December 2019.

EY forecasts that employment in Inverness will grow by 0.4% this year and by 0.3% annually, on average, until 2024, with employment rising at an average rate of 0.3% per year amid local economic growth of 1.2% per year.