June Labour Market Statistics for Scotland

15 Jun 2005

Scottish labour market remains in excellent health

Statistics released today show employment in Scotland remains close to historical highs and unemployment falling over the quarter and the year.
 
Unemployment in Scotland fell by 3,000 over the most recent quarter and by 9,000 over the year whilst the unemployment rate fell to 5.6%. The number of people claiming Jobseeker's Allowance in Scotland rose marginally by 400 over the month to May but fell by 5,800 over the year.  The claimant count unemployment rate remains at around its lowest for thirty years.

The economic activity rate of 79.5% and the Scottish employment rate of 75.0 per cent remain above the comparable UK figures. The number of people in employment fell by 3,000 over the quarter but increased by 23,000 over the year to 2,441,000. 


Commenting on the figures Scotland Office Minister David Cairns said:

"Unemployment levels are continuing to fall and within the European Union, only Denmark has a higher employment rate than Scotland.  Behind these statistics are real people with real jobs who are now benefiting from the many opportunities which work can offer.  The domestic stability and strong labour market policies delivered by this Government and the Scottish Government have ensured that our economy continues to prosper and that policies aimed at securing employment opportunity for all are working."


Latest Data for Scotland

Unemployment
Unemployment in Scotland fell by 3,000 to 144,000 in February to April 2005 compared with the previous three months.  The unemployment rate fell by 0.1 percentage point to 5.6 per cent.  Compared with the equivalent period one year earlier, the unemployment level was down by 9,000 and the unemployment rate fell by 0.4 percentage points.

Claimant Count Unemployment
The claimant count in Scotland, based on the seasonally adjusted number of people claiming Jobseeker's Allowance, rose marginally by 400 between April and May to 86,900.  However, compared to May 2004 the number of claimants was down 5,800.  The claimant count rate was unchanged at 3.3 per cent over the month and down 0.2 percentage points over the year.

Employment
The Labour Force Survey (LFS) indicates that the number of people in employment in Scotland in February to April 2005 was 2,441,000.  Employment was down by 3,000 compared with the previous three months but increased by 23,000 compared to the same period in 2004. The employment rate amongst those of working age fell by 0.3 percentage points on the previous quarter, to 75.0 per cent, but was up by 0.5 percentage points on the same period a year earlier.

Economic Activity
The number of economically active (in employment or ILO unemployed, seasonally adjusted) in February to March 2005 was 2,586,000.  This represents a decrease of 6,000 on the previous three-month period, but was 14,000 higher over the year. Among those aged 16-59/64, the economic activity rate was 79.5 per cent, down 0.3 percentage points over the previous quarter and up 0.2 percentage points over the year.

NOTES FOR NEWS EDITORS

1. 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.

2. 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. June-August data should be compared with March-May 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.

3. The count of those claiming unemployment-related benefits contiues to provide a full and timely range of data at sub-Scotland level for local authorities, 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.

4. 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.  An analysis of the data has given some indications that the increased level of economic activity in Scotland has been supported through increased participation among those previously classed as long-term sick.  The number of people not seeking employment in Scotland for this reason fell by 21,000 (23%) between December to February 2002 and the corresponding quarter to February 2005. The number of women re-entering the labour market from looking after the family/home is also a significant factor behind increased levels of activity.

5.  We have included a link to a PDF file which can be downloaded from the Office of National Statistics website at: