January labour market statistics for Scotland

21 Jan 2009

Commenting on Office for National Statistics (ONS) data released today, the Secretary of State for Scotland Jim Murphy said:

"Everyone is aware that these are difficult economic times which we are all facing, and the reality of the situation is that people are losing their jobs. However, this Government is making every effort to support jobs, and to help those people who lose their jobs back into employment."

"Whilst today's figures show further declines in the Scottish labour market, they also show it is demonstrating a greater level of resilience than the UK labour market as a whole, with a lower unemployment rate and higher economic activity and employment rates."

"I know that many people are worried about losing their jobs. We will do everything possible to support the newly unemployed from becoming the long term unemployed."

The latest ONS labour market statistics released today show that ILO unemployment increased by 13,000 over the quarter and by 6,000 over the year to stand at 138,000. The Scottish unemployment rate rose by 0.5 p.p. over the quarter to 5.2 per cent, which remains below the UK average unemployment rate of 6.1 per cent.

The claimant count measure (those people out of work and claiming Jobseeker's Allowance (JSA)) increased by 5,400 over the month and by 26,100 over the year to a total of 97,600 for December 2008. The claimant count rate is at 3.5 per cent.

Total employment in Scotland fell by 4,000 over the previous quarter and fell by 8,000 on the year to stand at 2,534,000. The Scottish employment rate fell by 0.4 p.p. over the quarter to 75.6 per cent, but continues to be above that of the UK and almost all countries within the EU.

Economic activity increased by 10,000 from the previous quarter to a level of 2,672,000, a fall of 2,000 over the year. The Scottish economic activity rate remains above the UK average.

Latest Data for Scotland

Employment

The Labour Force Survey (LFS) indicates that the number of people in employment in Scotland in September to November 2008 was 2,534,000. Employment was down by 4,000 compared to the previous three months and down by 8,000 compared to the same period last year. The employment rate fell by 0.4 p.p. over the quarter, and fell 0.9 p.p. over the year, to 75.6 per cent. In international terms, the Scottish employment rate remains above the UK average and the corresponding rate for the majority of other EU countries.

Unemployment

ILO unemployment in Scotland was up 13,000 over the quarter September to November 2008 to 138,000. The level was up 6,000 compared to the same quarter last year. The unemployment rate was up 0.5 p.p. from the previous quarter to 5.2% per cent, which is up 0.2 p.p. over the year.

Claimant Count Unemployment

The claimant count in Scotland, based on the seasonally adjusted number of people claiming Job Seeker's Allowance (JSA), increased by 5,400 in the month of December to 97,600. The level is up by 26,100 on December 2007. The claimant count rate was up 0.2 p.p. over the month and up 0.9 p.p. over the year to 3.5%.

Economic Activity

The number of economically active (defined as those in employment or ILO unemployed, seasonally adjusted) in Scotland in the September to November 2008 quarter was 2,672,000. This is up 10,000 from the previous quarter, but down 2,000 on the same point a year ago. Among those aged 16-59/64, the economic activity rate was 79.8 per cent ? unchanged on the previous quarter, but down 0.7 p.p. over the year.

Notes for news editors

The internationally comparable International Labour Organisation (ILO) measure of unemployment is the headline figure published by the Office for National Statistics (ONS) for UK regions/countries.
The ILO measure of unemployment, which is derived from the Labour Force Survey (LFS), is published 12 times a year for an average of the three preceding consecutive months. ONS recommend that seasonally adjusted data should be compared with the previous non-overlapping three-month period: i.e. September - November data should be compared with June - August data. Quarter to quarter changes at country/regional level are especially subject to sampling variability and should be interpreted in the context of changes over several quarters.
The count of those claiming unemployment-related benefits continues to provide a full and timely range of data at sub-Scotland level for local authorities, Travel to Work Areas (TTWAs) and parliamentary constituencies. The claimant count is also the main source of information on unemployment by age and duration. Data on the claimant count in the New Deal age and duration groups is available from 1985.
The ILO measure of unemployment defines unemployed people as those who are; without a job, want a job, have actively sought work in the last four weeks and are available to start work in the next two weeks or; out of work, have a found a job and are waiting to start in the next two months. The claimant count measures the number of people claiming Jobseeker's Allowance benefits. The claimant count measure is always the lower measure because some unemployed people are not entitled to claim benefits, or choose not to do so.
Economic activity is a measure of those who are in employment plus those who are unemployed but are available to enter the labour market (ILO unemployed). Conversely, the economically inactive are those people who are not in employment, but do not fulfil all the ILO criteria to be classified as unemployed. The most common reasons given for inactivity are being a student, being retired, looking after a family or home and being long-term sick or disabled.

To access the data from the ONS site, click on the following link:� Link opens in new window http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=15084

Select the link 'Regional Monthly Data ? January 2009' which will prompt you to unzip a folder of Excel files. Then select the file 'LMSScot1108' to access the data.

Media contact:
Nathaniel Mumford: 0207 270 6875 / 07771 938878
Clark Dunn: 0131 244 9053 / 07917 084371