18 May 2005
Employment climbs while unemployment falls
The continued strengthening of the Scottish labour market was emphasised again in statistics released today.
The number of people in employment rose by 6,000 over the quarter and by 37,000 over the year to 2,453,000. At 75.4 per cent, the Scottish employment rate has reached a new record high since records began in 1992 and remains above that of the UK and all other EU25 countries except Denmark.
Unemployment fell by 2,000 both over the most recent quarter and over the year. The unemployment rate fell to 5.5% and remains close to historic lows. The number of people unemployed and claiming Jobseeker's Allowance in Scotland rose marginally over the month to April but was down by 8,100 over the year. The claimant count rate remains at its lowest for thirty years.
The economic activity rate in Scotland increased both over the quarter and the year and now stands at 2,597,000. Along with the activity rate of 80.0%, these are highest figures recorded since records began and illustrate a high level of re-engagement in the labour market.
Commenting on the figures Scottish Secretary Alistair Darling, said:
"The continued strengthening of the Scottish labour market is very encouraging. Unemployment has fallen while employment continues to hit record levels and more people than ever before are being helped into the labour market to take advantage of the opportunities available. It is clear that the policies of the Government and Scottish Government aimed at securing employment opportunity for all are making a real difference to the people of Scotland."
Latest Data for Scotland
Unemployment
Unemployment in Scotland fell by 2,000 to 144,000 in January to March 2005 compared with the previous three months. The unemployment rate fell by 0.1 percentage points to 5.5 per cent. Compared with the equivalent period one year earlier, the unemployment level also decreased by 2,000 and the unemployment rate fell by 0.2 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 200 between March and April to 86,300. However, the level was 8,100 lower compared to April 2004. The claimant count rate was unchanged at 3.3 per cent over the month to April and down 0.3 percentage points over the year.
Employment
The Labour Force Survey (LFS) indicates that the number of people in employment in January to March 2005 was 2,453,000. Employment increased by 6,000 compared with the previous three months and by 37,000 on the same period last year. The employment rate amongst those of working age rose by 0.2 percentage points on the previous quarter, to 75.4 per cent, and was up by 0.9 percentage points on the same period a year earlier.
Economic Activity
The number of economically active (in employment or ILO unemployed, seasonally adjusted) in Scotland January to March 2005 stood at 2,597,000, an increase of 5,000 on the previous three-month period and 35,000 over the year. Among those aged 16-59/64, the economic activity rate was 80.0 per cent. This represents and increase of 0.2 percentage points over the previous quarter and of 0.8 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/egional 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 continues 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: http://www.statistics.gov.uk/pdfdir/lmsscot0505.pdf