Unemployment rate increases to 4.9% in Scotland

Unemployment north of the border is 0.5% higher than in England, ONS figures show.

Unemployment in Scotland rose slightly in the last quarter, according to the latest figures.

Data from the Office for National Statistics (ONS) shows that the unemployment rate for people aged 16 and over was 4.9% between March and May this year.

That’s a 0.8% rise on the previous quarter and above the UK-wide unemployment rate of 4.4%.

The figures show that 133,000 people in Scotland were out of work between March and May.

The employment rate for people aged 16-64 was 72.9%, which was 1.3% down on the previous three-month period.

This was below the UK-wide employment rate of 74.4%.

Deputy first minister and economy Kate Forbes said: “While we will continue to work closely with businesses and industry to give more people who are currently not economically active more opportunities in training and work, and to address current skills gaps from within our current population, we also need more people to come to live and work in Scotland.

“That is why we have launched Scotland’s Migration Service to attract workers with the right skills.”

Across the whole UK, figures showed that earnings growth has fallen back further amid mounting signs of a weakening jobs market.

The ONS said average regular earnings growth dropped to 5.7% in the three months to May – down from 6% in the previous three months and the lowest level since the quarter to September 2022.

Liz McKeown, ONS director of economic statistics, said: “Earnings growth in cash terms while remaining relatively strong, is showing signs of slowing again.

“However, with inflation falling, in real terms it is at its highest rate in over two-and-a-half years.

“We continue to see overall some signs of a cooling in the labour market, with the growth in the number of employees on the payroll weakening over the medium term and unemployment gradually increasing.

“The number of job vacancies is down across most sectors, led by retail and hospitality. The total has now been falling for a full two years, though it remains above pre-pandemic levels.”

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